Retirement supplier Canada Life has elevated its annuity charges for the sixteenth time this 12 months.
The supplier’s benchmark reference annuity of £100,000 at age 65 will now pay round £6,353 earnings a 12 months, in comparison with £4,542 for a similar annuity bought at the beginning of 2022.
The rise boosts assured earnings on a £100,000 annuity by £1,811 a 12 months, an additional £36,220 over a 20-year interval.
After a few years of decline annuity charges have been creeping upwards this 12 months, thanks primarily to will increase within the base price and gilt yields bettering.
Nick Flynn, retirement earnings director, Canada Life, stated: “Annuity charges have continued to bounce again following modifications to base price and the enhancements in yields on gilts, with charges up round 40% this 12 months. This sustained progress in potential earnings warrants giving annuities a re-evaluation, particularly for anybody involved about earnings safety in retirement.
“Annuities can play a key position in retirement plans and it’ll all the time pay to buy round for not solely the perfect price however the proper form annuity.”
