Annuity rates are in "free fall" according to latest data released by MGM Advantage.
According to the provider's Annuity Index, customers have suffered immensely as rates have tumbled as a result of record low gilt yields.
Enhanced annuities fell by 5% since June, whilst conventional annuity rates reduced by 7% over the same period, the largest quarterly reduction recorded for over three years.
Overall, rates are believed to have fallen by a massive 20% since August 2009, reflecting the sorry state of the annuity market.
Falling annuity rates are driving more people to seek advice on their retirement options, according to a survey by Primetime Retirement.
According to research, 76% of specialist income retirement advisers reported an increase in the number of people looking for advice with annuity and retirement options.
In fact, four in five advisers believe that this trend will continue to increase over the next twelve months as concerns about high inflation and low interest and annuity rates grow.
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