Our benchmark annuity rate increases
to £5,625 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 £5,625 pa up £252 pa over three months.

The 15-year gilt yields decreased by 11 basis last month and as a general guide a 11 basis point fall in gilt yields would result in a 1.1% decrease in annuities. Last month standard annuities were down 0.33% and lifestyle enhanced and smoker annuities down 0.02% suggesting rates may reduce in the short term.