Monday, July 24, 2023
HomeFinancial PlanningOver 50s unimpressed by rising annuity rates

Over 50s unimpressed by rising annuity rates



Despite the significant improvement in annuity rates over the past 18 months, only 14% of 50+ year olds who are at least fairly familiar with annuities consider them to currently offer a good rate.

In fact, 50+ year olds are more likely to say that annuities currently offer a poor rate of return compared to the long-term trend that they offer a good rate of return (21% vs 14% respectively) with just 3% considering them to offer a very good rate currently.

Canada Life research revealed that just over half of 50+ year olds (53%) consider an annuity rate of anything above 4% ‘good’.

Meanwhile a quarter (26%) will only consider annuity rates ‘good’ once they reach higher than 7%. Two in five (43%) over 50s say they don’t know if annuities offer a good or poor rate of return.

Currently a benchmark annuity for someone aged 65, with no pre-existing health or lifestyle conditions, would pay in the region of 7%, according to the company.

Nick Flynn, retirement income director at Canada Life said: “Annuities have been on a roll with rates increasing significantly over the past 18 months, at one point up by nearly 50%. This is a remarkable shift in fortune in a very short space of time.”

He said consumers have not yet caught up with the rapid rate improvements.

 Research was conducted among 2,000 UK adults, of which a representative sample of 955 were aged 50 and over, with 383 of those aged 50+ at least fairly aware of annuities – fieldwork conducted by Opinium between 28 April 2023 and 2 May 2023.




RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments