There was further glum news for retirees looking to increase their income during retirement – falling Bank of England interest rates mean that annuity rates are also falling. Some of the best annuity returns from the likes of Norwich Union (Aviva) have fallen significantly. This shows just how under pressure some of the main lenders are, and how people’s retirement funds are falling at an alarming rate.
Speaking more specifically, indexed linked annuities fell as well as smokers rates from £615 to £7199. Experts believe it is imperative for those seeking a pension annuity that they shop around to find the best deal as this could make the difference of thousands of pounds over the course of the annuity payout.
