MGM Advantage, the retirement income specialist, is warning that annuity rates are likely to fall further following the Bank of England decision to pump £50 billion into the UK economy by way of quantitative easing.

Andrew Tully, Pensions Technical Director, MGM Advantage commented: “A number of factors determine annuity pricing, including the yields available on UK gilts.  The latest round of quantitative easing will further impact gilt yields and will therefore drive down annuity prices.

“People approaching retirement who need to generate an income from their pensions will need to carefully consider their options.  One size does not fit all when it comes to which product to buy and there are innovative companies offering choice in the market, so seeking professional advice is key.  For people who choose an annuity, shopping around for the best rate is now more important than ever, with many more people qualifying for enhanced rates due to medical or lifestyle conditions.”

0 comments 0 people listening

Sign in

• Comment help
• Get Livefyre

Post comment as

+ Follow conversation Following - Unfollow

Post to

Sort: Newest | Oldest