September annuity rates on ‘even keel’

Annuity rates have mostly remained constant over the past month with Aviva still in the top spot, according to the latest figures from Alexander Forbes Annuity Bureau.

Basing research on a 60-year-old male with a £100,000 purchase, the figures say Aviva offers slightly less compared to last month, with £6,020 rather than £6,060, but still is ahead of the pack.

Saga remains at £6,000, and Canada Life remained third with the same rate of £5,932. Legal and General's rate dropped from £5,841 to £5,769, and Standard Life came in fifth place with £5,612.

RPI rates showed little movement over the past month. Canada Life came in first with an unchanged £3,520, whilst second-place Aviva had dropped marginally from £3,490 to £3,430. Saga, Standard Life and AXA Sun Life all remained the same as last month, with £3,340, £3,332 and £3,269 respectively.

Smokers rates showed more fluctuation, with LV= at the top spot with a rate of £6,987, relegating Reliance Mutual (£6,721) to third place. Just Retirement came in second, staying at £6,840. Canada Life came in forth with £6,099 and Aviva is this month in fifth place offering £6,070.

"Whilst many annuities remain relatively static at these historically low levels, there is much more movement for smokers," says Gemma Goodman, head of operations at Alexander Forbes Annuity Bureau.

"Reliance Mutual has slipped from top spot to bronze position in the space of one month proving that nothing can be taken for granted with annuity rates.

"However, the message remains a simple one - whether you are a smoker or not, if you are researching your annuity rates it is vital to shop around to get the best offer you can find."