Annuity rates have hit their highest point in eight years, with a further surge in annuity income expected if the Bank of England raises interest rates today, according to a new report.

The ideal retirement income is £22,500 per annum, according to new consumer research.

Annuity rates could rise by 14% if the Bank of England continues to raise the base rate.

National Financial Planning group Continuum has predicted that annuities may see a return to favour as advisers try to cope with the impact of soaring inflation on their clients.