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.

Annuity rates increased by 20% in the 12 months to June, according to a new report.

Less than a third (28%) of over-50s would buy an annuity or consider buying one, according to new research by the FSCS.

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.