However, recent data from Hargreaves Lansdown’s annuity search engine showed the same 65-year-old could now get up to £7,430 per year from their annuity which is only slightly below the post “mini” Budget high and the highest seen since last October.
Morrissey said: “It shows that annuities continue to deliver the best value we’ve seen in years, and we can expect to see interest in them continue to grow from people looking to secure a guaranteed income in retirement.
“Annuities should always be part of the conversation if a level of guaranteed income is needed in retirement but the concern many people have is that once bought, they cannot be unwound, and so you potentially miss out on a future market upswing or a better rate if you develop a health condition later in life.
“However, it’s important to note that you are under no obligation to annuitise your entire pension in one go. Instead, you can annuitise your pension in stages allowing you to lock in guaranteed income as you age and giving you the potential to benefit from higher rates as you age.”
Annuities lost their shine in 2014 when the former chancellor George Osborne famously announced in the Budget: "Nobody will ever be forced to buy an annuity again", as he unveiled the incoming pension freedoms and choice regime.
This regime came into force in 2015 and saw a shift towards drawdown as a more popular pension planning product.
amy.austin@ft.com
