An analysis of annuity rates by Moneyfacts has shown that over the last 8 years they have fallen by almost 12% for men and 11% for women.
According to the statistics, in 1994 a man of 60 buying an annuity with capital of £10,000 would have received £1,024 income. That figure in 2002 was £621. In terms of the rates for women the figure in 1994 was £930 and last year's figure was £578.
The percentage falls are shocking but not surprising, due to the state of the economy currently.
However, if you look at the figures and were expecting the 1994 rates, your pension income is going to be severely hit in retirement.
If you are close to retirement and are concerned at the rate of income you might receive, why not ask your pension company for a retirement projection. Once you have your quotation why not ask us for a comparison to see if better rates can be secured? One of the benefits of using an independent financial advisers is that it might be possible to obtain a better deal for you.
As your retirement should last for a very long time, finding out which rates are best could men thousands of pounds to you in the long run.