Annuity Rates, Annuities, Pensions, Divorce
Equity release lifetime mortgages
Home News Annuity Rates Annuities Pension Annuity Impaired Annuity Annuity Quotes Pensions Divorce Resources
   


11 April 2012 last updated
Pension annuities income could be hit by eurozone debt crisis

The debt crisis will diminish credit worthy bonds and gilts with investors chasing small numbers of safe investments increasing the price and reducing yields and annuities.

The International Monetary Fund (IMF) has said that as the number of safe assets reduces it could remove $9 trillion from previously safe assets by 2016.

As credit agencies remove AAA rated status investors re-direct funds to safe assets like government bonds and gilts including the US and UK.

The debt crisis in the Eurozone and in particular Spain and Italy could help undermine financial stability with a lack of safe assets for investors resulting in greater demand for UK gilts and lower yields and annuity rates.

Annuity rates are based on the 15-year gilt yields and with demand for these vehicles remaining high pensioners and pension funds can expect lower annuities in the future.

 
Eurozone hit annuities income
 
  More annuity topics
  April News 2012
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2019
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
 

Volatility to continue for annuities

After yesterdays significant falls, equity and bond markets have recovered slightly with the FTSE-100 index up 39 points at 5,635. The Dow Jones index increased 89 points ending at 12,805 and Europe increased by about 0.75%.

Gilt yields were also up slightly with the 15-year gilt yields increasing by 3 basis points at 2.58%. This month is likely to continue to be volatile as markets and investors absorb the implications of a positive first quarter for 2012 against mixed global economic news from the US and growth slowing in China with evidence showing the risk of the debt crisis spreading to Spain and Italy. This means annuities income for pensioners will continue to remain volatile with uncertainty over the security of investments, in particular in the the Eurozone.

Pensioners retiring should be aware of this volatility as it will increase the risk of their funds decreasing if they remain invested in equities and a possible drop in annuity rates while they transfer their pension using an open market option.


To maximise the income from annuities pensioner suffering from lifestyle medical conditions such as high blood pressure, Cholesterol, are a smoker or are overweight could receive a higher income from an enhanced annuity. For serious conditions such as such as diabetes, heart conditions or cancer an impaired annuity can could offer incomes of 40% higher than the highest standard annuity.

If they do not have any medical conditions pensioners can receive up to 30% higher initial incomes using a with profits annuity or investment backed annuity. Pensioners would to take a slightly higher risk than the guaranteed open market option so should have other pension arrangements such as a final salary scheme or other personal pension plans.

News related stories:
UK pension annuity income volatile with Spain's debt crisis
Retirement annuity income threat Greece euro exit
UK annuity rates fall as Eurozone fear spreads to markets and gilts
Annuities rates fall may reverse with Eurozone bank bailout deal
Related internet links:
Guardian - IMF warns Eurozone stability under threat
Call 020 8816 7501 for a quote
Annuity Rates
  Age Single Joint  
  55 £4,352 £3,999  
  60 £4,783 £4,292  
  65 £5,456 £4,877  
  70 £6,270 £5,588  
£100,000 purchase, level rates, standard
Unisex rates and joint life basis
  Annuity Rates  
Annuity Quotes
  Plan your annuity and get quotes from the 12 leading providers  
 
  free annuity quote Free Annuity Quotes
  annuity quote no obligation No Obligation
  annuity quote all providers From All Providers
 
  Annuity Quote  
  Annuity Rates News:

Enhanced annuity rates down 3%
Enhanced annuity rates down Enhanced annuities reduce by -3.31% as gilt yields fall by 28 basis points
Annuity fall with Brexit uncertainty
nnuities fall after Brexit uncertainty Brexit uncertainty sends investors to safety of gilts lowering yields and annuities
UK annuities could rise with higher yields
UK annuities fall Yields rise by 18 basis points after improved prospect of US and China trade deal
Gilt yields rise and Trump delays tariff
Gilt yields rise as Trump delays tariffs

Donald Trump delays $200 billion of tariffs on Chinese goods pushing up yields

Retirement income up with equity rally
Retirement income recovers

Retirement income is up 7.5% benefiting from January rally of US stocks


  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook Page Twitter Page
Sharingpensions.co.uk   This website is for marketing purposes only and does not provide specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-19 Sharingpensions.co.uk. All Rights Reserved