Annuity Rates, Annuities, Pensions, Divorce Annuity Rates Charts
Home News Annuity Rates Annuities Pension Annuity Impaired Annuity Annuity Quotes Pensions Divorce Resources
   


12 June 2012 last updated
Retirement income from annuities could be hit with new QE measures

Annuities are likely to decrease if the Bank of England injects money through Quantitative Easing resulting in lower retirement income for pensioners.

Pensioner income from July onwards could reduce still further with lower annuity rates if the bank of England expands Quantitative Easing (QE) which is currently held at £325bn.

This would involve the Bank of England injecting money into the economy by buying UK government bonds and gilts forcing the price up and reducing the yields.

This measure could be necessary as manufacturing output reduced by 0.3% compared to a year ago according to figures released from the Office for National Statistics (ONS).

Poor manufacturing output would help to continue the recession throughout the summer and without further lending from banks would make it difficult to stimulate growth.

 
Annuities hit by QE measures
 
  More annuity topics
  June News 2012
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2022
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
 

Annuities could fall with Bank of England action

As a result of a new QE programme from the Bank of England and lower gilt yields pensioner income from retirement annuities would reduce below the current lowest levels ever recorded. Annuity rates have been reducing since the financial crisis first started in 2008 when annuity rates reached a high point.

Then a male aged 65 with a fund of £100,000 could purchase a pension annuity with a retirement income of £7,908 per year and this has since reduced to only £5,962 per year, a fall of £1,946 pa or almost 25% in only four years. Gilt yields are affected by the Eurozone crisis and if this was combined with another injection of QE annuity rates could reduce even further.

The 15-year gilt yields have increased today by 5 basis points to 2.25% although there remains uncertainty over the Spanish 100bn euro banks bailout. Spanish 10-year bond yields have increased to an unsustainable 6.72% and Italy's 10-year bond yields have increased to 6.22% adding to their growing debt problem. Equities were buoyant with the FTSE-100 index up 41 points at 5,473 and the Dow Jones up 162 points at 12,573 as rumours that the Federal Reserve may announce a stimulus package next week to help generate new jobs.

News related stories:
UK pension annuity income may reduce with lower inflation and QE
Standard annuity rates fall with Bank of England stimulus package
UK annuity rates lower with new QE as inflation falls
Annuity rates under threat as Bank of England injects £50 billion of QE
Annuity rates may lower if UK inflation fall leads to more QE
Related internet links:
BBC - US Fed ready to act on economy
Annuity Rates
  Age Single Joint  
  55 £6,361 £5,898  
  60 £6,842 £6,244  
  65 £7,474 £6,843  
  70 £8,405 £7,660  
£100,000 purchase, level rates, standard
Unisex rates and joint life basis
  Annuity Rates  
Annuity Quotes
  Plan your annuity and get quotes from the 12 leading providers  
 
  free annuity quote Free Annuity Quotes
  annuity quote no obligation No Obligation
  annuity quote all providers From All Providers
 
  Annuity Quote  
  Annuity Rates News:

Annuities rise 6% to eleven year high
Annuities rise 6% to 11 year high Annuities rise 6% and gilt yields increase 90 basis points due to central bank action
Gitl yields rise 87 basis points
rise 87 basis points Gilt yields higher as investors shrug off global recession fears as base rates rise
Retirement income at record high
Retirement income soars Retirement income rises by 71.6% as yields and annuities are driven higher
Pension annuities fall on recession fears
Pension annuities fall Pension annuities fall and gilt yields are lower by -27 basis points to 2.32%
Annuity rates rise but yields weaken
Annuity rates rise 7pc last month Annuity rates rise by a record 7% for a single month but gilt yields weaken

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook Page Twitter Page
Sharingpensions.co.uk   This website is for marketing purposes only and does not provide specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-22 Sharingpensions.co.uk. All Rights Reserved