Returns available to pension savers on Guaranteed Income for Life solutions are reaching new highs through early 2025, according to figures from Just Group.
The gains are particularly marked for older pensioners, with a healthy 70-year-old now able to secure nearly 9% guaranteed income returns and a 75-year-old around 10%. Those with lifestyle factors and health history could secure higher returns, the retirement specialist said.
Stephen Lowe, group communications director at Just Group, said the higher rates were generating interest from retirees seeking to lock in a good level of monthly income for life.
“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.”
Analysis by Just Group showed a healthy person investing £50,000 of pension cash in the top-paying single-life annuity would receive annual income of £3,834 at age 65, rising to £4,331 at age 70 and £4,993 at age 75.
Lowe said the rates look “particularly attractive” when compared against withdrawal rates from income drawdown.
“Understandably, people like flexibility but they have to balance that against the cost. I think many people are realising that current rates will allow them to lock in the income they need, giving them both peace of mind but also more flexibility to invest, spend or give away other savings.
“By securing some income, you take away the need to build in a big safety margin in case things go wrong,” he added.
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