Bond market mayhem brings annuities back onto advisers' radars

Guaranteed income for life is back on the table

clock • 3 min read

Tom Selby looks at the bond market ‘mayhem’ of recent weeks and says annuities have been brought back to the fore…

Annuities have been in the doldrums for over a decade, in part because gilt yields - which largely determine the rates offered by insurers - have remained persistently low as a result of the Bank of England's massive Quantitative Easing programme. That round of bond buying was designed to prop up the economy after the 2007/08 banking crisis and shaped the UK's economic landscape throughout the 2020s. However, things are now shifting - and dramatically so. Gilt yields were already on the rise across the West before the Mini-Budget at the back end of September, with central banks - incl...

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