Annuity rates down by 5.5% as uncertainty continues in Europe

Despite the efforts of Germany to agree a Eurozone debt plan investors have continued to move funds to safe havens such as UK government bonds and gilts.

This increases the price and reduces the yields with the 15-year gilt yields lower by 43 basis points to 2.91% for September.

The fall in gilt yields means annuity rates have also reduce and this month standard rates are lower by up to 5.5% although many smoker annuities managed a small increase of about 0.5%.

If the Eurozone fail to convince investors that they are in control of the debt crisis it is likely that annuity rates will follow gilt yields to lower levels.