Annuity rates rising again – at last

Pension payouts have started to creep up again from record lows. Six insurers have increased their rates on annuities over the past couple of weeks. The best deal will now give a 65-year-old man with a £100,000 pension pot an annual income of £6,492, up from £6,291 just a month ago. In September pension payouts reached a record low with the same pension pot generating less than half the income it would have done 15 years ago. However experts have warned the rally could be a temporary blip.

Our opinion: Annuity rates have moved up at last, but this is not necessarily the start of a sustained trend.

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