Annuity rates falling

In the week that the Equality and Human Rights commission called on the government to scrap the default retirement age to allow people to work for longer, there's some sobering news for anyone buying an annuity now.

Rates are continuing to fall and it seems standard annuities are performing worse than enhanced annuities which pay higher rates, usually to people in high risk health groups.

But why?

Money Box hears from Aston Goodey, Director sales and marketing at retirement income specialist MGM Advantage.

This item was first broadcast on Radio 4's Money Box on Saturday, 30 January 2010