ANNUITY rates have hit their highest levels for several months, but the long term trend remains downwards, according to Alexander Forbes Annuity Bureau.
Level annuity rates have soared recently and retirees are benefiting from credit crunch economics and fierce competition amongst providers. As a result, the best annuity rate (male 60, level escalation, £100k purchase) jumped from £6,780 to £7, 010 by May 1, a rise of almost 4pc in just one month. Alexander Forbes cited Norwich Union and Legal & General as offering some of the best deals, with Norwich Union topping the table for level annuities in May, while Legal & General was the best across the board for inflation-linked annuities during the month. Smokers seeking RPI-linked annuit...
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