Annuity rates fall to new low during the pandemic : vimarsan

Annuity rates fall to new low during the pandemic


Annuity rates fall to new low during the pandemic
Payouts could fall even further as Bank of England looks at negative interest rates, experts say
26 January 2021 • 6:00am
Annuity rates hit record lows in 2020 continuing a trend of deterioration that has seen the guaranteed source of income lose value in five out of the past six years.
Rates fell 6.4pc in the 12 months since January 2020, according to Moneyfacts, an analyst. This meant the average basic “single-life” annuity for someone aged 65 now only pays £4,590 a year from a £100,000 pot. This is down from £4,824 in 2019 and £5,250 two years prior, according to Hargreaves Lansdown, a stock broker.

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