In 2009 Bank of England came up with the new “quantitative easing” aka money printing. Since then annuity rates have gone down by nearly a third worrying, in particular, those about to retire.
According to the latest press reports, a £100,000 pension would initially have brought £5,040 profit although with the latest changes in mind that amount would decrease to £3,580 leaving the pensioner £1,460 down.
Representatives of AXA Life Europe, one of the largest lifetime income plans investors has been heard saying that the “quantitative easing” programme is the main factor for the 30 per cent fall in the pension annuities in UK.
AXA has also advised retirees to reconsider their decisions considering retirement annuities. There is however a silver lining as the annuities are said to rise by 10 per cent in the short-term, quarterly the amount could increase even by a quarter.
Even in those gloomy circumstances it is possible to purchase life annuity with minimal risk. Researching different companies, requesting quotes will pay off in finding best pension annuity rates. Also some of them, such as Retirement Marketplace, offer guaranteed annuity rates allowing pensioners to leave the finance to the professionals and enjoy their everyday lives.
There are also plenty options to choose while considering entrusting third companies with the pension pot one has worked for a number of years. It is certainly a better option rather than hiding the money in the pillowcase as some people still probably do.
As for the economic situation, the Bank of England has opted against printing any more money and ploughing it into the government bonds, which has had a direct influence on the annuity rates dropdown.