Average annuity rates climbed to 7.25% for a 65-year-old in September, up from 7.11% in June, according to the Standard Life Annuity Rate Tracker.

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.

The marked improvement in annuity rates over the past 12 months has also had a positive impact on the cost of guarantees, according to Canada Life research.

Annuity rates have soared in 2022 as gilt yields rose and competitors vied for market position.