Despite the significant improvement in annuity rates over the past 18 months, only 14% of 50+ year olds who are at least fairly familiar with annuities consider them to currently offer a good rate.

The break-even point for retirees to get their money back from an annuity investment has fallen by five years as rates rise, according to Canada Life.

People aged 50 and over on average believe they will live until around 80 despite official figures suggesting they will live for several years longer.

Financial provider Canada Life is to sell its individual onshore protection business to Countrywide Assured, a division of consolidator Chesnara Plc, for an undisclosed sum.