Annuity rates have fallen to their lowest level in 25 years as interest rates and drawdown bite

Annuity rates have fallen to their lowest level in 25 years as interest rates and drawdowns bite

Annuity rates hit their lowest level since 1994 in September, with implications for those making retirement decisions. Since the introduction of pensions flexibility in 2015, annuities have become significantly less prevalent as a way of converting a pension fund into income. The most recent figures from the Financial Conduct Authority show that over five times as much money is placed in income drawdown now as goes towards annuity purchase…