Annuity rates are still ‘bumping along the bottom', despite successive rises this year. Jenna Towler finds out if delaying that all-important purchase is worth the risk…
Average annuity rates increased by just short of 2.5% in the second quarter of 2013, and rates are up 5.6% since December 2012. So is the tide finally turning for retirees about to make their all-important annuity purchase? Unfortunately, according to providers, it would seem not. External factors are the crucial element when it comes to annuity rates - the biggest of which is the government gilt-buying programme, quantitative easing (QE). Average annuity rates now stand at about 5.3% - but when the first found of QE took place in March 2009 they were just shy of 7%. MGM Advantage ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes