Lords urge Euro approach to annuity rate problem

During a House of Lords debate yesterday, Lord Davies of Oldham raised the issue of low annuity rates disincentivising people to save for retirement. "With interest rates low, the returns on annuities will be well below people's expectations. Could the government not think more radically about this in the longer term? "Could we not follow the pattern adopted by some European governments on annuities, whereby people would be able to purchase government bonds at a slightly better rate of interest than obtained at present?" He also said annuitants contributing to the government in the...