On 15 September 2016, annuity rates for a 65 year old plummeted to a low of £4,495, but have since increased by 19% reaching £5,341, based on a £100,000 pension, according to the figures released by Hargreaves Lansdown.

Prior to the referendum, just 3 months before hitting rock bottom, a £100,000 pension would have returned an annuity rate of £5,155. The figures highlighted the impact that the referendum had on annuity products.

Commenting on the results, Hargreaves Lansdown senior analyst Nathan Long said: “Annuity rates suffered a huge drop in the immediate aftermath of the referendum result as the yield on Gilts tumbled. Now is a great time to look at annuities again as rates having risen 19% since bottoming out 2 years ago, and the average managed pension fund has grown 15%.

“The number of annuity providers in the market has shrunk to just 6, but those that are left are providing competitive rates. You should always shop around to ensure you are getting the very best deal for your personal circumstances.

“Changes to life expectancy and interest rates, specifically gilt yields, impact on the annuity rates offered by insurers. There’s a lot of nervousness among investors, thanks to economic uncertainties, a 10 year stock market bull run which must come to an end one day and of course Brexit anxiety. Pension investors may take the opportunity to de-risk ahead of potentially stormy waters by using a tranche of their pension to buy an annuity. The optimum annuity price point for most providers is around £40,000 to £60,000 which may appeal to those currently using income drawdown.”

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