Poor annuity rates are a threat to AE's success

Jonathan Stapleton asks what the latest drop in retirement incomes means

Jonathan Stapleton
clock

Between December 2009 and March 2013, the cost of buying a retirement income jumped by 29%.

In 2009 a £5,000 income would have cost a man £118,000 and a woman £133,500. Today, based on unisex annuity rates, the cost is £152,800 - equivalent to just 3.27%.   To many people, who largely bas...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

TPR, DWP and FCA publish consultation on VfM framework

TPR, DWP and FCA publish consultation on VfM framework

Consultation will require DC schemes to publish ‘clear data’ on performance, costs and quality of service

Martin Richmond
clock 08 January 2026 • 8 min read
What can the UK learn from the Australian pension system?

What can the UK learn from the Australian pension system?

Gregg McClymont says attention to differences as well as similarities is important

Gregg McClymont
clock 17 December 2025 • 3 min read
SPP: Making retirement choices simpler and safer

SPP: Making retirement choices simpler and safer

Anish Rav says initiatives that help achieve a better outcome in retirement are welcome

Anish Rav
clock 17 December 2025 • 3 min read
Trustpilot