Life Annuity Rates Continue to Decline – Moneyfacts

A report by Moneyfacts, UK financial portal, suggests that annuity rates are continuing to slide making it harder for Brits to have sustainable retirement income.

Let us remind that earlier this year the fall in annuity rate to all-time lows caused violent reaction among UK consumers. Nevertheless, rates continued to decline in September 2010 as they experienced the greatest fall since October 2009.

As such, the average annuity price for males fell to £597 down from £604 (1.1% drop), whereas female annuity fell to £561, down from £568 (1.2% drop).

Commenting on the figures, Mr. Eagling of Moneyfacts said that these dramatic falls in pension annuities make it much harder for UK retirees to secure decent retirement income through an annuity. He suggests that those who decide to buy an annuity should shop around for best rates.

The reality, however, is that 40% of Brits do not bother to browse the market for best annuity prices, as reported by Aviva earlier this year.