The post you are reporting:
Annuity rates are influenced by 15 year gilt prices that underpin the products in addition mortality rates, longevity, charges and competition all have a place in determining the price. Longevity and, more recently, QE have brought down rates dramatically over a lot of years, going back 24 years that I know of.
There will always be some providers who offer higher rates than others - next week Scottish Widows might be offering the highest rate as they have often done in the past. I am only surprised at Reliance Mutual - it won't last....
There is a quid pro-quo here. The government has borrowed a lot of money so the low gilt yield helps them finance the deficit this way. In addition of course businesses need the low interest rates on their borrowing to expand and individuals want them for their mortgages. Low rates to savers and annuities are the downside so you can effectively say that pensioners and savers are the ones paying for Browns economic foul-up.
That said - there is good news.
You can go to the open market option and, in that way, significantly increase your annuity income. You are not stuck with the provider through whom you invested your pension.
In addition if you smoke you could get a higher rate than a non-smoker as you have lower life expectancy.
If you have high blood pressure, had cancer, or one of many conditions common at retirement you could get a significantly better rate. I have placed business where they get 30-40% more income than on a standard annuity.
Also if you have saved enough and planned the right way you may find it best not to buy a traditional annuity at all. There are many alternatives. But you do need to have taken your retirement planning seriously to have the level of fund needed for some of these options. With a small fund you lose out, less money to give you an income and fewer income options.
Remember as well, 25% of the pension fund can be taken tax-free as a lump sum.
Do not be put off doing a pension by this publicity - the tax-relief on contributions is valuable meaning that for every £100 you pay you get £125 invested so that is 25% immediate growth on you money even for non-taxpayers.
It is worth also adding that a company good at growing your pension may not be a good one from whom to draw your pension. Scottish Widows have one of the better stakeholder and personal pensions as long as you avoid the many 'dog funds' they, like all other providers, have.
I have to give the usual warnings - you should seek independent financial advice on pension saving and in drawing your pension income. Nothing I have said here should be interpreted as a personal recommendation to invest.