Pensioners buying an annuity have seen their potential income rise by more than 20pc since the start of the year after rates rocketed.
A 65-year-old with a £100,000 pension can now receive £5,940 per year by buying an annuity – the highest amount since August 2014.
Today’s return is 28pc higher compared with the start of the year, when the average payout was just £4,626.For 75-year-olds, income has jumped 18pc from £6,697 to £7,905 over the same period, while 60-year-olds’ can receive 27pc more, up from £3,976 to £5,049. Annuities are priced off the yields available on British government bonds – […]
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