Our benchmark annuity rate increases
to £5,671 pa with more competition

The annuity rates chart in fig 1 is our benchmark example is for 65 year old male, £100,000 fund on a single life, level and no guaranteed period. The pension income last month ended at £5,671 pa up £298 pa since January.

The 15-year gilt yields increased by 35 basis last month and as a general guide a 35 basis point fall in gilt yields would result in a 3.5% increase in annuities. Last month standard annuities were up 0.54% and lifestyle enhanced and smoker annuities up 1.54% suggesting rates may rincrease in the short term.