Retirement: Delay to Solvency II to affect Annuity rates?

A delay in the EU’s Solvency II rules could offer some would-be retirees a little relief from constantly falling Annuity  rates. The EU Solvency II rules, which were due to be introduced in January 2014, will force insurers, including Annuity providers, to hold more capital, which could potentially reduce Annuity rates. Retiring soon? Our advisers can help you make the right decision...

Pensions: QE affecting Annuity rates, government should do more to help

A committee of influential MPs has said that the government should be doing more to help retirees affected by falls in Annuity rates due to the Bank of England’s policy of Quantitative Easing (QE). Falling Annuity rates Reporting back on the recent Budget, the Treasury Committee said that QE was causing Annuity rates to fall and that “lax monetary policy” was “particularly penalising savers.” Any pension Annuity calculator will show how far Annuity rates have fallen in recent months, caused in no small part by falling gilt yields, which are one of the side effects of the Bank of ...

Annuity rates: Mr Bean downplays the effect of QE on retirees

The popular financial press have been awash with stories highlighting the effect the Bank of England’s Quantitative Easing (QE) program has had on Annuity rates. Saga and their Director General, Ros Altman, have been particularly vocal, saying only last week: “QE has permanently impoverished more than one million pensioners, and thousands more Annuity purchasers will receive reduced pensions every week." However, at least one influential figure disagrees. In comments also made last week, Deputy Governor of the Bank of England, Charlie Bean (pictured) said that recent and would be retirees had not been as hard hit by QE as many claim and that ...

Disappointed by low Annuity rates, but need the income? Read on for an alternative

Any pension Annuity comparison will show how far Annuity rates have dropped in recent months. Statistics showing that Annuity rates have fallen in each of the past four years and by around 40% over the past 16 years emphasise the point still further. The Annuity problem Whilst buying an Annuity when rates are low is understandably unattractive, for many people who need the income and want a simple and guaranteed solution the perception is that there is little alternative. Enter the Fixed Term Annuity, could this be the answer to creating an immediate income, without locking into all time low Annuity rates? For ...