Rising gilt yields should carry a silver lining for those looking to buy retirement income through an annuity.
What does the future hold for annuity buyers? One the one hand, rates have improved dramatically in recent months; on the other there are fears that the Bank of England will keep a tight lid on interest rates, which could mean that annuity rates will struggle to go any higher – or could even start falling again.
To assess what is likely to happen, we need to look at how annuity rates are tied to other important benchmarks in the financial markets and what has caused the recent improvement. Then we’ll see how likely it is that this rise will continue.
- Why gilt pricing is so crucial to pensioners?
- Where are gilt yields going now?
- So what next for annuity rates?
To find out more, read the full article from The Telegraph by following this link.
Author: Richard Evans, The Telegraph
No comments:
Post a Comment