Annuities rates 'strong'

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Annuities rates 'strong'

Fri 23rd May 2008

Moneyfacts has found that current average annuity rates are better than those offered in December last year.

The financial information provider found that after dropping during the previous decade, average annuity rates improved by six per cent in 2007, taking them to their highest level in five years.

Despite strong rates, it advises consumers not be complacent and to shop around to ensure they get the best deal.

According to its research, the difference between the best and the worst standard rates on offer can vary by as much as 20 per cent.

Suzanne Greener, deputy editor of investment life & pensions at Moneyfacts, warned: "Although rates are at their highest level for some time, continued uncertainty in the economic environment means that there is no guarantee that rates will remain at this level."

Canada Life currently holds the top spot in the group's best-buy tables for compulsory purchase annuities of £10,000 for a female aged 60.

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