Fears for annuity rates as govt extends QE

Hymans Robertson partner Clive Fortes said the announcement has pushed gilt yields down to levels not seen since the late 1800s. Andrew Tully, pensions technical director at MGM Advantage, said: "A number of factors determine annuity pricing, including the yields available on UK gilts. "The latest round of quantitative easing (QE) will further impact gilt yields and will therefore drive down annuity prices." Simon Healy, head of savings at Aldermore, warned that 2009's round of QE did serious damage to annuity rates. "When quantitative easing was first introduced, it had the kno...