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Annuities offer value despite quantitative easing

Annuities offer value despite quantitative easing

Category: Annuities

Updated: 12/12/2017
First Published: 10/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Annuities are likely to offer better value than savings rates despite the effects of quantitative easing, consumers have been told.

Experts have warned that the fall in government bond yields, caused by the creation of £75 billion of new funds, will negatively impact annuity rates.

However, Craig Fazzini-Jones, head of MGM Advantages Designs for Retirement, insists that annuities will compare well against investment returns for some time yet.

"Annuities remain a good, solid option for many people considering retirement this year. That's because once an annuity is purchased the rate remains fixed, regardless of what happens with asset prices or interest rates," he added.

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