Fall in gilts and annuities 'could impact pensioners'

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Fall in gilts and annuities 'could impact pensioners'

Tue 18th Oct 2011

A fall in annuity rates and gilt yields could result from the government buying back debt over the coming months and this could spell difficulties for individuals approaching retirement.

Dave Penny, independent financial advisor and managing director at Invest Southwest, said the impact of falling yields and rates, coupled with a poor stock market at present, could mean many Brits are left with "severely compromised" pensions.

He commented: "This is a real worry for people looking to secure their guaranteed income for their retirement in the upcoming months."

Meanwhile, Steven Lowe, management board member of the Pension Income Choice Association, recently told listeners to the FT Money podcast that individuals approaching retirement age in the UK should shop around to ensure they find the best annuity rates for them.

He argued that failing to do so can result in Brits losing out on thousands of pounds over the course of their retirement.

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