Today’s retirees 60% worse off than 20 years ago as Annuity rates drop further

New figures have shown that falling gilt yields mean retirees are around 60% worse off than if they had retired 20 years ago. Gilts & Annuities Insurers use gilts to back Annuity products, the lower gilt rates we have seen over the past few years and particularly over the past few months will lead to lower incomes in retirement for many. Falling Annuity rates July: £6,212 August: £5,852 September: £5,802 October: £5,675 November £5,577 Based on ...

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 ...