Pension Income Record Increase

Pension income increased for the first time since 2007 last year as annuity rates jumped 10% despite a low interest rate environment

Emma Wall 13 January, 2014 | 5:27PM

Good news for workers approaching retirement - annuity rates which secure your pension income increased for the first time in six years in 2013. 

After falling to an all-time low in March 2013, annuity rates rose 10% over the course of the year thanks to rising Gilt yields and increased competition in the annuity market. 

A report by Investment Life and Pensions Moneyfacts revealed that a standard level without guarantee annuity for a 65 year old rose by 9.1% based on a £10K purchase price and by 10.5% based on a £50K purchase price during 2013. This was the largest increase since the report began in 1994.

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Emma Wall  is former Senior International Editor for Morningstar

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