Annuities pay out £14,180 less than 2010 rates

The provider has found the average annuity for a 65 year old with a £50,000 pension will generate an annual income of £2,786. In January 2010, the average annuity for a 65 year old with the same pot would have yielded £3,495 a year. This is a reduction of 20% or £14,180 less over a 20 year retirement. Aston Goodey, distribution and marketing director at MGM Advantage said: "Improving longevity and Solvency II will continue to apply pressure on rates, and we expect a further period of uncertainly as the dust settles on the introduction of gender neutral prices." Average annuity rate...