Act now for the best rates on annuities deals

ANNUITY incomes have soared to record highs offering a golden opportunity for pensioners looking to lock in a guaranteed income.

- By Harvey Jones

But with interest rate cuts looming next month this window may not stay open for much longer, while interest rates on cash savings could fall too.

Both annuities and cash look attractive given recent global stock market volatility, but today's high rates may not last.

A 65-year-old with a £100,000 pension can now secure up to £7,882 a year through a single life level annuity with a five-year guarantee, new figures from Hargreaves Lansdown show.

That's a staggering 63% more than just five years ago, when interest rates were near zero and £100,000 bought as little as £4,835.

Inflation-linked annuities are also delivering solid returns, currently offering starting income of up to £5,786 a year, which will rise by 3% every year.