Displaying items by tag: annuities

I’ve just received a very optimistic-sounding email from HMRC entitled, "A happy new tax year starts here.”

A 65-year-old with a £100,000 pension could get themselves up to £7,430 per year from an annuity, the highest since last October, according to data from Hargreaves Lansdown.

In the immortal words of the legendary French singer Maurice Chevalier, “Ah yes, I remember it well.” In this case, the rather incorrect prediction of the death of annuities.

The annuity market is buoyant as the Bank of England’s rate pause has encourage people to take the plunge, according to Hargreaves Lansdown.

In the last two years annuity rates have risen by more than half, according to Canada Life, giving a 65-year-old with a £100,000 annuity an extra £2,500 a year.

The difference between the best and worst annuity in the open market could pay an extra £13,240 in income or £662 a year over a typical 20-year period, according to Canada Life.

Average annuity rates climbed to 7.25% for a 65-year-old in September, up from 7.11% in June, according to the Standard Life Annuity Rate Tracker.

Standard Life has re-entered the annuity market as annuity rates rise and demand for annuities surges.

Canada Life has reported doubled annuity sales compared to last year, according to its UK half year financial results.

Single pensioners need £257,000 more than couples to achieve a comfortable living standard in retirement, according to analysis by Standard Life, part of the Phoenix Group.