Annuities continue to make a comeback with rates up 44%

New figures from Canada Life show a 14-year high was reached in October

clock • 2 min read

Annuities have made a “comeback” this year, according to Canada Life, which found the average benchmark rate is up 44% since January and hit a 14-year high in October.

Canada Life looked at benchmark annuity rates from 1 January this year until 1 December.  The rate for a £100,000 purchase price for a healthy single life with a ten-year guarantee was almost 4% for a 60-year-old at the beginning of this year. By the start of December it had reached 5.9%. Similarly, for a 65-year-old with the same profile it rose from 4.5% to 6.6% and for a 70-year-old it rose from 5.25% to 7.2%. Retirement income director Nick Flynn commented: "Annuities have made quite a comeback this year, with guaranteed lifetime income back in vogue following the strong improv...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Income

Craven Street Wealth acquires Bernard Barrett Associates

Craven Street Wealth acquires Bernard Barrett Associates

Deal with £1.25bn comes after last year’s acquisition of Tarvos Wealth

Alex Sebastian
clock 03 March 2023 • 1 min read
Better annuity awareness needed, Canada Life says

Better annuity awareness needed, Canada Life says

Disclosure of health conditions can lead to 'significantly' improved income

Jasmine Urquhart
clock 02 March 2023 • 1 min read
7IM managing director of intermediary Verona Kenny

7IM launches Retirement Income Solution

RIS takes ‘bucketing approach’ to client assets across different time horizons

Jenna Brown
clock 24 February 2023 • 3 min read