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.

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.