BoE's Bean dismisses QE annuity rate fears

clock

Quantitative easing (QE) will not have a significant impact on pensioner incomes, Charles Bean, deputy governor of the Bank of England (BoE) has claimed.

The comment came after pensioner organisations have voiced fears the government's decision to buy back £50bn in gilts - driving down their yields - has dragged annuity rates even lower. Gilts are used as one of the factors in pricing annuities. After the government's first round of QE in 2009, annuity rates fell by 6%, according to figures from Aldermore. Over-50s group Saga has repeatedly complained the combination of falling annuity rates due to QE, combined with high inflation eroding pensioner buying power, is contributing to poverty in retirement. However, Bean, deputy governo...

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

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

FCA's Rathi addresses Autumn Budget market abuse concerns

FCA's Rathi addresses Autumn Budget market abuse concerns

Pens open letter to Treasury Committee

Isabel Baxter
clock 04 December 2025 • 2 min read
More tax, less shelter: A slow-burn Budget for savers and investors

More tax, less shelter: A slow-burn Budget for savers and investors

'The Budget documents make for sobering reading for those trying to build up their wealth'

Laith Khalaf
clock 04 December 2025 • 3 min read
OBR 'deeply regrets' early release of Budget document

OBR 'deeply regrets' early release of Budget document

Mistaken release of Budget documents forced Richard Hughes' resignation

Linus Uhlig
clock 02 December 2025 • 3 min read