Annuity rates to feel QE hangover for 'many generations'

The provider said annuity rates have fallen about 15% since the roll outof QE in March 2009.  It explained rates are determined by a number of factors, including the returns available on 15-year UK gilts. Since the introduction of QE, the benchmark 15-year UK gilt return has reduced by 20%. In the same period, annuity rates have fallen by some 15%. Last week, Bank of England governor Mark Carney said there was no case for further QE as the economy recovers. MGM Advantage pensions technical director Andrew Tully said: "There is no doubt the annuity legacy from QE will be felt for ma...