Returns available to pension savers through guaranteed income for life solutions have reached new highs in early 2025, according to data from Just Group.

The gains were particularly marked for older buyers, as a healthy 70-year-old could now secure nearly 9 per cent guaranteed income returns, rising to around 10 per cent for a 75-year-old.

The firm added that the returns could still be higher once lifestyle factors and health history were considered.

A healthy person investing £50,000 of pension cash in the top-paying single-life annuity would receive an annual income of £3,834 (a rate of just over 7.6 per cent) at age 65, £4,331 (8.7 per cent) at age 70, and £4,993 (10 per cent) at age 75.

The rates include a five-year period during which the income will be paid in the event of premature death, which can be extended.

Just Group communications director, Stephen Lowe, said that the current attractive rates on offer were generating interest from retirees looking to lock in a “good level” of monthly income they know will continue to be paid for the rest of their lives.

“With guaranteed income rates at multi-year highs, it is worth retirees considering how an annuity could strengthen their overall financial planning,” he continued.

“We know many older retirees are taking notice because if they can lock in the income they need, they are insulated against investment volatility in global financial markets.”

“I think many people are realising that current rates will allow them to lock in the income they need, giving them both peace of mind and more flexibility to invest, spend or give away other savings,” he added.

However, Lowe warned that those wanting to investigate their annuity options should seek the help of a professional annuity broker or financial adviser to select options tailored to their circumstances and find the best deals.

“The rate offered is likely to vary quite significantly from the standard rates published, depending on your health history and lifestyle factors, the options you choose, such as inflation-protection or continuing income to a spouse or partner,” he explained.

“Providers change annuity rates frequently, and your pension company will unlikely offer the best rate. It’s worth shopping around because finding the best deal can deliver thousands of pounds extra over the course of a long retirement,” concluded Lowe.

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