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...

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

Canada Life's Nick Flynn

Annuities firmly back 'in vogue' as rates jump 54% in two years

Guaranteed retirement income has been on ‘remarkable journey’

Jenna Brown
clock 11 December 2023 • 2 min read
Canada Life's Nick Flynn

Why annuities 'rightly' have key role in clients' retirement income

Is it time to row back on pensions freedoms?

Nick Flynn
clock 06 December 2023 • 4 min read
Rising annuity rates result in DB transfer compensation cuts

Rising annuity rates result in DB transfer compensation cuts

Rate rises mean people can secure a higher retirement income

Holly Roach
clock 29 August 2023 • 1 min read