Many of the UK’s insurers have given retirees some positive news after raising their annuity rates due to higher gilt yields. An increase since the beginning of 2013 in government bond is now being felt by consumers purchasing annuities with Legal & General, MGM Advantage, Just Retirement and LV=.
MGM Advantage have commented that its rates have increased by 2.3% on average since the beginning of February. These new rises would increase an annuity for a 65-year-old smoker with high blood pressure by approximately Â£100 a year.
Market insiders have suggested that annuities will continue to vary due to the recent gender neutral pricing at the end of last year, yet this small ray of sunshine will surely please many Briton thinking of retiring.