Retirees 60% worse off as gilt yields fall to historic lows

The yields on the 10-year gilt has dropped to a low of 2.07% - the lowest level seen since these government bonds were introduced back in the 1950s, according to The Daily Telegraph. At the start of the year the yield was above 3%. The fall is likely to further depress the price of annuities. Pension funds invest in government debt as a stable and secure means of delivering retirement income, so any significant drop in yields will have a knock-on effect on annuity pricing. This latest fall in yields has been caused by the anxiety surrounding the euro debt problems. Concerns Euro...