Timing is everything when buying an annuity

Current market conditions are not ideal as gilt yields and equity markets are at lows. However, analysts warn rates could still fall further and recommend buying now rather than later

The current low annuity rates leave many pensioners with little choice but to buy a product with lacklustre returns compared to those available in the past. It is an issue that has been around for several years. When income drawdown products came out in the mid 1990s one of the marketing arguments was that these offered investors the opportunity to defer annuity purchase until such time as rates improved. Since then rates have fallen further and there is little hope of improvement in sight. If spending £100,000, the highest annual rate a 65-year old male looking for a single l...