The current best annuity rates based on open market analysis by Hargreaves and showing a gross annual annuity based on a pension fund of £100,000 are:
Single Life - Male 65 |
|
Provider | Amount |
Legal and General | £5,349 |
Hodge Life | £5,098 |
Canada Life | £5,082 |
Retirement Advantage | £5,009 |
Aviva | £4,972 |
Source: Hargreaves Lansdown Annuity Supermarket
Kusal Ariyawansa, chartered financial planner at Appleton Gerrard Private Wealth Management, said he was not the biggest fan of annuities altogether because of the lack of flexibility and poor death benefits they entail.
But he accepted there was a place for them in the broader population or with people who did not want to take on any risk.
“For my clients the need for an annuity is rare, if at all. The key for them is to preserve their wealth. I fundamentally disagree with the concept that if you build up a fund and you pass away you lose everything unless you build in some guarantee period.
“However, I don’t think they are off the table for a significant part of the population.”
carmen.reichman@ft.com
