Press release
Shopping around for an annuity could earn you £15,000 more over the course of your retirement
New analysis from Legal & General Retail reveals a 66-year-old with a £100,000 pension pot can now purchase an annuity that pays an annual income of £6,790– an increase of £842 when compared to the same time last year.
8 Aug 2023
Full press release
- New analysis from Legal & General Retail reveals average annuity income1 for June 2023 has increased by over £800 when compared to June last year
- Demand is also up with annuity quote enquiries increasing by two thirds (67%) compared to the same time last year
- Annuity Ready data reveals a 9.1% difference in top and bottom annuity rates currently available on the market
Rising interest rates are driving the highest demand for annuities in years, with Legal & General Retail seeing 67% more quote requests2 when comparing June 2023 to June 2022.
Data from annuity comparison service, Annuity Ready, found that the difference between the best and worst annuity available is huge. A 66-year-old with a £100,000 pension pot are finding rates differ by as much as 9.1% - a difference of £622 in potential annual income or £14,928 over the course of the average retirement3.
Lorna Shah, Managing Director of Retail Retirement, Legal & General Retail: “In recent months there has been a significant increase in focus on annuities, not least as a result of rising rates, which as our data shows can have a very real impact on the income of someone who has purchased an annuity. However, despite the record rates, this should be part of a wider discussion and is only one aspect of the value annuities can offer. Annuities continue to be a good option for people who want peace of mind and the assurance that comes with a guaranteed income for the rest of their life.If you are considering an annuity, it’s important to look at all your options carefully and make sure you’ve had all the advice and guidance you need before deciding what the right choice is for you. As our research shows, it is really key to shop around to make sure you are getting the best deal. For people looking to research their own annuity the award-winning Annuity Ready website compares rates across the whole market. It will point you towards the best income you can get, even if it’s not with Legal & General. Alternatively, you can also consult a financial adviser to explore rates and your available options, or come directly to Legal & General.”
References
1As at 30/6/23 a standard lifetime annuity with a rate of 6.79% for a single life with a £100k premium, 66 years old, with a 5 year guarantee. Based on a level benefit that is paid monthly in advance.
2 Legal & General Retail received 206,544 quote requests in June 2023 vs. 123,848 in June 2022. This is a 67% increase.
3 As at 30/06/2023, Legal & General Retail estimates that an average 66 year old with a standard level of health will have a life expectancy of 90 years
4 Annuity Ready is a trading style of Investment Discounts On Line Ltd and is part of the Legal & General Group.
Further information
