Annuity incomes have risen 20% in the last year, analysis by Hargreaves Lansdown shows.
Currently, a 65-year-old with a £100,000 ($128,000, €117,210) pension can get up to £7,144 per year, a £100 per year increase in just the last two weeks.
The last time incomes were this high was November 2022 and with interest rates rising in the coming months their value could continue to increase.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Though they have dropped in popularity in recent years annuities should always be considered where there is a need for guaranteed income in a retirement strategy.
“The state pension will offer secure income up to a certain level but if you need more, and you don’t have something like a defined benefit pension scheme, then annuities are an important option.”
In October 2022, data from Canada Life found that the average annuity rates had hit their highest levels in 14 years, up 52% since the beginning of the 2022.
