Early death barrier to annuities lifts as income guarantees 'cost peanuts'

New research from Canada Life reveals the significant improvement in UK annuity rates over the past 12 months has also had a positive impact on the cost of guarantees. In one example, the margin between no guarantee and a 20-year guarantee is just a 4% reduction in annual income, with a £100,000 annuity securing an income of £6,532 vs £6,270, a reduction of £262 a year. The 20-year guarantee will return income of at least £125,400, irrespective of what happens to the customer. Nick Flynn, retirement income director at Canada Life said: "As annuity rates have improved so has the co...