Higher rates push up pensioner payouts

Higher rates push up pensioner payouts

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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