Could annuities make a comeback as BoE hikes rates?

Annuity rates could 'rise 14%'

clock • 4 min read

Financial advisers could see their options open up for clients as experts predict an annuities boom. Julia Bahr speaks to a number of advisers and providers about the future of purchasing guaranteed income...

The Bank of England's monetary policy committee increased base rates from 0.25% to 0.5% last Thursday (3 February). The rate raise followed a hike in December and many predict interest rates will continue to climb higher as the bank battles rising inflation.  Annuity rates have already responded to the increase in December with rates rising on average 5.4% in January and further increases are likely to follow. Canada Life has suggests annuity rates could rise by 14% if the Bank of England base rate rises a further percentage point to 1.5% this year.  Rate raise with a 'hawkish twis...

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