Retirees suffer as gap between best and worst annuity rates widens

£27,000 extra needed to achieve PLSA ‘moderate’ level of income

Julia Bahr
clock • 3 min read

The size of the current best/worst annuity gap is costing pensioners thousands of pounds in retirement income, according to recent research from retirement specialist Just Group.

Volatile investment markets and improving income rates have encouraged more retirees to consider annuities that pay a guaranteed income for life, the firm said. Analysis by the firm last year in November 2022 revealed that the best/worst gap had hit a four-year-high at that time. Just Group highlighted that recent months have seen the gap between the most and least competitive annuity deals rise sharply, potentially resulting in savers spending more than necessary to secure the retirement income they need. Just Group group communications director Stephen Lowe said: "Our analysis shows...

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