Higher annuity rates 'may not last too long'

People who are currently enjoying higher rates on their annuity products might find that this trend is only a short-term occurrence, it has been suggested.

According to the Investment Life & Pensions Moneyfacts Editor, Richard Eagling, the country is not likely to see the long-term continuation of these high rates.

He stated: "Sadly, the recent uplift in average retirement income may ultimately prove to be little more than a temporary respite in the uphill battle to secure a comfortable retirement."

However, Mr Eagling did go on to say that some degree of comfort may have been offered to people by the recent rise which has been seen with regards to retirement incomes.

This may have countered the problem of high inflation rates to an extent, he suggested.

Martin Bamford, Chartered Financial Planner at Informed Choice, recently noted that retirement planning is an area where some UK consumers are still failing to engage properly.

Posted by David Shuker.