New research shows a sharp decline in annuity rates say My Pension Expert
Research just released shows a sharp decline in annuity rates.
(PRWEB UK) 29 October 2012
The quantitative easing programme set out by the Bank of England has triggered a severe drop in pension annuities.
Research has discovered that annuities have decreased by 7% in the last quarter. Several figureheads from the industry have commented that the programme has affected gilt yields, with a dramatic drop crucially affecting annuity companies. Companies rely on gilt yields and use them to allocate retirement income to retirees.
Pension pots are dropping considerably and this will significantly affect a multitude of pensioners who are already being hit by high inflation and low interest rates.
Experts believe annuity rates are bearing the brunt of the problems as the UK continues to struggle with its pension woes.
It has been suggested that the QE programme is the cause of the drop in annuity rates and it is predicted that rates will not rise for quite some time.
Scott Mullen from My Pension Expert said "The best way to ensure the best deal is found is to shop around for pension annuities and understand what is going on in today's market."
My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.
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