He added: “May rates appear to be holding steady despite concerning news from the chancellor’s latest Budget. Many experts expect the news of more quantitative easing to hurt returns on government gilts, which will affect annuity rates that providers offer.”
According to the data from the firm, which is part of the JLT group, standard level annuity rates, based on a £100,000 purchase price on both a single and joint life basis, have only changed slightly. It reported that Legal & General had maintained first place with a single life level annuity increasing by £15.48, to £5191.80 and a joint life annuity increasing by £71.64 to £4776.60.
Annuities with increases linked to the retail price index were reduced by all of the top four providers by between 1.5 per cent and 5 per cent. L&G remained the most competitive, offering a single life annuity of £2852.40 a year and a joint life annuity of £2488.68.
The Bureau also reported that single life smoker rates had remained unchanged, with Just Retirement in top position with an income of £5807.60 a year.
Mr Williams said: “Even though rates have remained largely unchanged this month, it is still important for anyone approaching retirement to use the open market option to find their top-paying annuity provider which fits their individual needs. By not researching the market thoroughly, pensioners could be missing out on the income they rightly deserve.”
Adviser View
Colin McCallum of Edinburgh-based Heritable Financial Planning, said: “I absolutely agree with Mr Williams about using the OMO. It is very important for those approaching retirement to speak to a financial adviser about income options in general. ”
Annuity Snapshots
Rates as at Wednesday 1 May 2013
| Annuity Type: | Compulsory Purchase Annuity |
| Payment Frequency: | Monthly |
| Payment Timing: | Arrear |
| Guarantee Period: | None |
| Purchase Price: | £100,000 |
| Escalation: Level, Single Life Age 60 |
| Escalation: RPI, Single Life Age 60 |
|
|
|
|
| Provider | Rank | Income |
| Provider | Rank | Income |
| Legal & General | 1 | £5,191.80 |
| Legal & General | 1 | £2,852.40 |
| Canada Life | 2 | £5,002.68 |
| Standard Life | 2 | £2,734.80 |
| Aviva | 3 | £4,864.56 |
| Aviva | 3 | £2,549.40 |
| Standard Life | 4 | £4,510.80 |
| Canada Life | 4 | £2,449.56 |
| Escalation: Level, Joint Life, 50% Spouse’s Male 60, Female 57 |
| Escalation: RPI, Joint Life, 50% Spouse’s Male 60, Female 57 |
|
|
|
|
| Provider | Rank | Income |
| Provider | Rank | Income |
| Legal & General | 1 | £4,776.60 |
| Legal & General | 1 | £2,488.68 |
| Canada Life | 2 | £4,700.40 |
| Aviva | 2 | £2,386.20 |
| Aviva | 3 | £4,670.40 |
| Standard Life | 3 | £2,374.80 |
| Standard Life | 4 | £4,114.80 |
| Canada Life | 4 | £2,166.00 |
| Annuity Type: | Compulsory Purchase Annuity |
| Payment Frequency: | Monthly |
| Payment Timing: | Arrear |
| Guarantee Period: | None |
| Purchase Price: | £100,000 |
| Smoker rates: | Yes |
| Escalation: Level , Single Life Age 60 |
|
|
| Provider | Rank | Income |
| Just Retirement | 1 | £5,807.60 |
| LV= | 2 | £5,719.00 |
| Reliance Mutual | 3 | £5,657.52 |
| Partnership Assurance | 4 | £5,584.32 |
