You are here: Home - Retirement -

Annuity rates set for fresh QE blow

Written by:
The latest round of quantitative easing (QE) from the Bank of England (BoE) is set to drive down annuity rates even further, hitting pensioners' incomes.
Annuity rates set for fresh QE blow

With an extra £50bn of QE announced last week in an attempt to stimulate the economy, further falls in gilt yields, which are linked to annuities, are expected.

The QE programme now stands at £375bn and income offered to those approaching retirement has fallen by 20% in the past three years, the Financial Times reports.

According to the paper, a 65-year-old man with a £100,000 pension pot could have secured an annuity income of £6,930 in March 2009 when QE was started.

However, he would now be offered only £5,850.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Flight delayed or cancelled? How you can claim £520 compensation

If your flight’s already been delayed or cancelled, or you’re jetting away this summer and want to be armed wi...

Could this be the secret to early retirement?

Taking an active approach to where your pension is invested means money is deposited into funds that can drama...

Why you shouldn’t buy travel currency in the UK with your credit card

If you’re heading abroad this summer, exchanging money in the UK ahead of your travels is a sensible idea. But...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Asda set to rival high street banks

Supermarket giant Asda is launching its new personal finance services brand in a bid to appeal to its 18m customers...