Pensions - Articles - Canada Life increases annuity rates for 16th time this year

 A benchmark reference annuity of £100,000 at age 65 will now pay around £6,353 income a year, compared to £4,542 for the same annuity purchased at the start of 2022. That is an improvement in guaranteed income of £1,811 a year, or an extra £36,220 over the course of a 20-year period.

 Nick Flynn, retirement income director, Canada Life commented: “Annuity rates have continued to bounce back following changes to base rate and the improvements in yields on gilts, with rates up around 40% this year. This sustained growth in potential income warrants giving annuities a second look, especially for anyone concerned about income security in retirement.

 “Annuities can play a key role in retirement plans and it will always play to shop around for not only the best rate but the right shape annuity. An adviser or broker will help choose the right annuity for the clients’ individual circumstances.”