Enhanced rates fall as conventional annuity rates stabilise

Conventional rates for both men and women have increased over the past two months with male rates up 0.2% while female rates are up by 2.27% - however, it is a different story for enhanced rates, with male rates down by 2.6% and female rates down by 2.45%

Aston Goodey, distribution and marketing director at MGM Advantage comments:

“It is a real mixed bag for annuity rates with the gap between conventional and enhanced rates having shrunk to one of the smallest margins since we launched the index in 2009. These price changes have largely been driven by the recent small improvements in gilt yields and bond spreads pulling in.

“The annuity rate market will continue to surprise over the coming weeks and months, as rates will change from tactical pricing moves as well as gender neutral pricing. Seeking financial advice is crucial to ensure you use the most appropriate solutions for your individual requirements as well as securing the best annuity rate.”