Increasing annuity rates a good chance to ‘lock in’ competitive retirement income – Just Group

Returns available to pension savers on Guaranteed Income for Life solutions have set new highs throughout early 2025, figures from Just Group revealed.

The gains were particularly marked for older buyers where a healthy 70-year-old could now secure nearly
9% guaranteed income returns and a 75-year-old around 10%.

The returns could be higher still once lifestyle factors and health history have been taken into account.

Stephen Lowe, group communications director at the retirement specialist Just Group, said that that
the current attractive rates on offer were generating interest from retirees looking to lock in a good level
of monthly income they know will continue to be paid for the rest of their lives.

He said:“With guaranteed income rates at multi-year highs, it is worth retirees considering how an annuity could strengthen their overall financial planning.

“We know many older retirees are taking notice because if they can lock in the income they need, they are insulated against investment volatility in global financial markets.”

A healthy person investing £50,000 of pension cash in the top-paying single-life annuity would receive
annual income of £3,834 (a rate of just over 7.6%) at age 65, £4,331 (8.7%) at age 70, and £4,993 (10%) at
age 75.

The rates include a five-year period during which the income will be paid in the event of premature
death, which can be extended.