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...
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