Pension savers approaching retirement face further disappointment after it was revealed annuity rates fell again last month.
The latest research from Moneyfacts.co.uk has shown that male annuity rates fell by around 0.8% in July following another round of re-pricing by annuity providers.
The average rate for a male aged 65 purchasing a level without guarantee annuity (based on a £10K purchase price) fell from £614 per annum to £609 per annum during the month.
Overall, the average male annuity rate has dropped by 6.1% over the last twelve months, whilst the average female rate has fallen by 5.1%.
Over the past fifteen years, annuity rates have dropped by 45% for males and 42% for females.
Increased life expectancy and a consistent slide in gilt yields bear the brunt of the blame for the falls seen in annuity rates over the last decade and a half.
The news highlights the importance that soon-to-be retirees shop around to find the very best annuity rates on offer.
In order to get the best value for money from their pension pot, people approaching retirement should always take the time to evaluate the various annuity options open to them across the whole of the annuity market.
The annuity rate offered by the provider who holds the pension might not be the best annuity rate available.
People in ill health, suffering from a particular medical condition, or who perhaps smoke could also be offered improved rates through so called impaired and enhanced annuities.
If you're nearing retirement, why not start your annuity research today to see what level of retirement income you can expect to achieve from your pension pot?
Our annuity best buy tables reveal how the offerings from various annuity providers in the market compare, including names such as Saga and MGM Advantage.
We've also recently partnered up with Premier Retirement Services to provide you access to their online annuity planner service.
Choosing an annuity is likely to be one of the most important financial decisions you will ever make, so any time used researching the annuity market will most definitely be time well spent.
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