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

The provider said at the start of 2022, an annuity with a £100,000 purchase value would have paid an income of about £4,540 a year for someone aged 65 with no health or lifestyle conditions to declare. The same scenario today would see an annuitant paid £7,000 a year, it explained, an increase of 54%, driven by rising interest rates and the returns available on gilts. Canada Life said that over the course of a 20-year retirement, the annuity at today's rates would deliver about £49,200 extra income compared to an annuity sold in January 2022. Retirement income director Nick Flynn (...