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Annuity rates drop by 20% in three years

Annuity rates drop by 20% in three years

Category: Annuities

Updated: 12/12/2017
First Published: 09/10/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.