Retirement incomes are 7.9% lower than last year

The recent pension reforms have given retirees far more choice over how they spend their pension pot, with annuities no longer being the sole option for many. However, this extra flexibility has come at the expense of those who still want the guaranteed income that annuities can bring – lower demand has led to a sharp drop in annuity rates, so much so that the average income is almost 8% lower than it was a year ago.