Retirement: Annuity rates drop following Brexit decision

Brexit exit emergencyAs the political fallout from Brexit continues with almost daily resignations, the effects on your personal finances are starting to filter through. One of the key groups who will feel an almost immediate effect are those people approaching retirement. Decision time As you get nearer to retirement a number of decisions need to be made, perhaps the most pressing is how to turn your pension pot into an income. Despite the introduction of Pension Freedom in April 2015, using an Annuity, which provides a guaranteed income for the rest of your ...

Annuities: Annuity rates drop by 29% since Quantitative Easing started

Falling profitsNew research has confirmed the devastating impact Quantitative Easing has had on Annuity rates. The figures, from AXA Life Europe, show since Quantitative Easing was introduced by the Bank of England in March 2009, Annuity rates have dropped by 29%. Annuity rates have been falling for some years due to increased life expectancy. However, the research from AXA provides confirmation, if any were really needed, that Quantitative Easing has pushed Annuity rates significantly lower. The Bank of England has previously ...

Pensions: Quantitative Easing hits pension funds for £90 billion

The National Association of Pension Funds (NAPF) has released figures which show the Bank of England’s program of Quantitative Easing (QE) has knocked a further £90 billion off the value of final salary pension funds. The Bank of England’s QE program started over three years ago and has been deployed at various times since then to try and help the ailing economy. The QE program now stands at £325 billion having been extended by a further £50 billion last month. Final salary scheme deficit...

Annuity rates: Why have they dropped and where are the heading?

The summer is normally a quiet time for Annuities, not this year, rates are dropping and the stock market, where huge amounts of pension savings are held, is volatile to say the least. Any basic Annuity rates comparison shows that over the past few years the trend has been downward, this is in the most part down to falling gilt yields and increase longevity; we are all living longer. We speak to large numbers of potential Annuity purchasers and many are concerned about the right time to buy their Annuity and whether rates will ever start to rise again. In light ...