Annuity rates hit an eight year high

Annuity rates rose to their highest level in eight years even before the base rate increased and are now likely to further increase…

Someone with a pension pot worth £100,000 could now expect an income in the region of over £5,940 a year by taking an annuity.  It is proposed that in the near future we could see further increases to see incomes rise to over £6,000. The last time the income was similar to this was in August 2014.  An annuity lets you swap some or all of your pension saving for a regular income that is guaranteed for life.  With interest rates on the rise again, this gives annuities a boost after a period of interest rates languishing at historic lows.  The Bank of England increased interest rates to 1.25% on Thursday 16th June 2022.

Thinking about your retirement plans and need help to understand your pension options, please speak with us today.  Call us on 01603 957599 for your free initial consultation.

 

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