BoE's Bean dismisses QE annuity rate fears

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...