You are here: Home - Retirement -

Annuities pay out £14,180 less than 2010 rates

0
Written by:
21/01/2013
Today’s average annuity will pay £14,180 less over retirement than an annuity purchased three years ago, new research has shown.

Provider MGM Advantage has found the average annuity for a 65 year old with a £50,000 pension will generate an annual income of £2,786.

In January 2010, the average annuity for a 65 year old with the same pot would have yielded £3,495 a year. This is a reduction of 20% or £14,180 less over a 20 year retirement.

Aston Goodey, distribution and marketing director at MGM Advantage said: “Improving longevity and Solvency II will continue to apply pressure on rates, and we expect a further period of uncertainly as the dust settles on the introduction of gender neutral prices.”

Average annuity rates also fell by 2.5% in the last quarter of 2012. This is the seventh successive quarter rates have reduced, MGM Advantage has said.

Throughout 2012, the average annual income for a 65 year-old man buying a standard annuity also dropped by 11.7%.

Goodey adds: “With annuity rates so low people will be wondering if they have any options. It is hugely important that you shop around for the best deal to make the most of your pension. You should consider all of the options available at retirement rather than be short-changed by your holding pension provider.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

After an award-winning health insurance provider?

Winner of best online health care provider in the Your Money Awards 2015

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

How to get your bank statements mortgage-approval ready

If you are applying for a mortgage or re-mortgage, you want to ensure your application is approved. But what m...
How to get your bank statements mortgage-approval ready

How car owners can make £500 a week

Thousands of car owners are signing up to peer-to-peer car rental websites as a way of making some extra cash....
How car owners can make £500 a week

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2237608-financialpages
FTSE 100 treads water as ‘Titanic’ week begins

London’s leading share index is flat in early trading as investors keep their powder dry ahead of a number of...

Close