A 65-year-old with a £100,000 pension could get themselves up to £7,430 per year from an annuity, the highest since last October, according to data from Hargreaves Lansdown.

Half (49%) of workers in the UK plan to work beyond State Pension age, with the average expected retirement age of 72.

In the last two years annuity rates have risen by more than half, according to Canada Life, giving a 65-year-old with a £100,000 annuity an extra £2,500 a year.

The difference between the best and worst annuity in the open market could pay an extra £13,240 in income or £662 a year over a typical 20-year period, according to Canada Life.

Canada Life has reported doubled annuity sales compared to last year, according to its UK half year financial results.

Despite the significant improvement in annuity rates over the past 18 months, only 14% of 50+ year olds who are at least fairly familiar with annuities consider them to currently offer a good rate.

The break-even point for retirees to get their money back from an annuity investment has fallen by five years as rates rise, according to Canada Life.

The Money Purchase Annual Allowance (MPAA) has created a pensions tax trap for millions of people aged over 55, according to new research.

Annuity rates have soared in 2022 as gilt yields rose and competitors vied for market position.

Average annuity rates have a hit a 14-year high and have increased by 52% in the past nine months, according to new data.