The past month saw mixed movements in the annuities market as two of the top five providers offering standard, inflation-linked, and smokers annuity cover cut their rates, the Annuity Bureau said.
Based on a £100,000 purchase, paid monthly with no guarantee period, October annuity rates saw Legal & General keep its top spot as the best provider, despite cutting their rates by 0.15%. It now pays an annual income of £5,608.44 for a single life and £5,145.36 for joint lives after a 1.2% drop.
Data from the bureau also saw Canada Life slash their rates by 3%. It remained in second place in the bureau's league table, paying £5,275.20 a year on a single life, just over £300 less than Legal & General - and £4,989.00 on a joint life basis.
The only provider to raise its rates was Aviva, by between 2% and 4%. The insurer stayed in third place with an annual income of £5,199.60 for a single life an £4,930.44 for joint lives. While for single life cover Standard Life replaced Prudential in fourth position and also remained in fourth place for a joint life with rates unchanged from September.
Annuity Bureau director Richard Williams said: 'The market movements during October were inconsistent between the providers so if an individual has had an annuity illustration within the last month they should get this updated to make sure that they are still getting the best rate.
'If they are using an adviser they should check that they have the most up to date figures and continue to shop around.'
The Annuity Bureau also found that inflation-linked annuities were 'inconsistent' over the month. It said Standard Life cut their rates by between 2.1% and 4.3% while Legal & General cut rates by between 0.4% and 3.8%. The changes saw Legal & General replace Standard Life at the top of the single life table with an annual income of £3,07.40.
Canada Life and Aviva were in third and fourth places after their rates dropped 3.8% and went up 4.2%, respectively.
On smoker rates, Reliance Mutual 'reversed their big increases' in September by reducing rates, the bureau said. Its rates dropped between 3.3% and 4.1% shifting the firm from first to fourth position in the joint life tables.
Legal & General are now providing the best single life rate for a smoker at £6,624 per annum, followed by Just Retirement on £6,451.80 an increase of 1%. LV= drop to third from first following a 3.5% rate cut with an income of £6,267.00.
For joint lives Scottish Widows have dropped out of the top table being replaced by Legal & General who jump straight into second place. Just Retirement took over first place from Reliance Mutual, providing an income of £5,786 for a male aged 60 and a female aged 57 although this is less than Reliance Mutual were giving last month.
