Annuity rates: Gap between best and worst rises to four-year high

Analysis finds gap could leave retirees potentially £500 a year worse off

Martin Richmond
clock • 2 min read

The gap between the best and worst paying annuities for retirees has risen to its highest level in over four years, according to analysis from Just Group.

The firm's research of the market found the disparity between the least and most competitive annuity providers has increased to 18%, compared to 14% earlier this year. It calculated this gap would result in a prospective 65-year-old retiree with a pension pot valued at £50,000 receiving a guaranteed income of £3,470 a year with the most competitive provider, compared to £2,952 a year with the least competitive, which could lead to a prospective retiree missing out on over £500 in extra income per year for the rest of their life. Just said the gap emphasised the importance of "shopping...

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Martin Richmond
Author spotlight

Martin Richmond

Reporter at Professional Pensions

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