Aviva, one of the leading pension annuity providers in the UK, has lifted its standard and enhanced annuity rates by between 0.25 per cent and 1.5 per cent. Pension specialist Darren Dicks said that the company had been responding to “upward gilt movements” as well as making changes in response to an increasing trend to use postcodes when making assessments. He added that this had allowed the company to raise rates and offer potential annuitants a better deal.
With so much doom and gloom surrounding the UK annuity market, this news from Aviva will be welcome to potential annuitants. And it’s not just Aviva (formerly Norwich Union) who maybe increasing their annuity rates in 2010; past trends have shown that once one pension provider increase their rates for pension annuities, the others tend to follow so they can stay competitive. So it might be wise to sit tight for a few weeks to see if any other providers match this increase from Aviva.
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