Annuity rates have climbed again meaning a 65-year-old with a £100,000 pension pot should be able to buy an annuity income of up to £7,144 per year, up from £7,027 two weeks ago and an increase of 20% on the same period last year.

People aged 50 and over on average believe they will live until around 80 despite official figures suggesting they will live for several years longer.

Annuities have hit their highest level since December, according to new data.

Sales of annuities surged more than a fifth during the first three months of the year to reach their highest level for eight years.