Smokers' annuity rates stir but RPI and level slashed

Smokers annuity rates rose in October after months of inactivity but RPI linked and level products were cut, according to Alexander Forbes Annuity Bureau.

In the RPI-linked annuities market, Aviva was the only insurer to increase its rates, adding £40 per year to its annuity for a 60-year-old male with a fund of £100,000. This was still no match for last month's top rate from Canada Life, which remains at £3,520.

Meanwhile, the top providers all cut or held their level annuity rates. Aviva still has the top rate but its current offering has fallen from £6,020 to £5,990. Saga cut £250 off its annuity income falling to third place in the table with £5,750.

For smokers' annuities, Reliance Mutual's rate of £6,721 came out on top as this part of the market recovered. Just Retirement, a regular winner in the annuity rate tables, cut £572 from its rate, falling from second place to third with £6,268.