Annuity sales have dropped 43.8% in June compared to June 2013 as retirees await the new pension freedoms in April 2015.

Rates for standard annuities are actually increasing at the moment, the average single life annuity secured an income of £3,552 per annum in June, up by 3.7% from £3,426 in May. This is the highest annuity rate in at least a year and compares to £2,942 in June 2013.

Not all annuity providers are struggling. One annuity and retirement income provider that specialises in Fixed Term Annuities has experienced significant increases in annuity business. They have launched a new product that allows a 12-month opt-out so that clients can take advantage of forthcoming pension reforms.

I think that this has always been a complex area for people retiring. Given the new legislation, the innovation and the options available you do need independent financial advice if you are considering drawing or deferring drawing your pension benefits.