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Thursday April 24th 2014

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Annuity Rates Hit a Two-Year High

retirementplansAverage annuity rates have increased by a record 6 percent in the third quarter of 2013, the biggest movement in rates since 2009. Rates are up by 12 percent this year. Index reveals a gulf in rates, with the best enhanced rate 38 percent higher than the worst standard rate. The latest MGM Advantage Annuity Index has revealed annuity rates have increased by 6 percent in the third quarter of the year, the largest quarterly increase since the Index launched in August 2009. Overall, rates are up by 12 percent since January, helping annuity rates to recover to a two-year high. The retirement income specialist has also revealed the gulf between the best enhanced annuity rate and worst standard annuity rate is around 38 percent, meaning many people with health or lifestyle conditions could be missing out on thousands of pounds of income. Up to 70 percent of people at retirement could qualify for a better rate because of a health or lifestyle condition, and yet only 6 percent of consumers who purchased an annuity in the second quarter of the year without advice purchased an enhanced annuity (this compares to 45 percent when advice is provided or people shopped around).