Pensioners can earn £13,000 more as interest rates rise

Pensioners can earn £13,000 more as interest rates rise

Annuity rates have shot up at the fastest pace in more than 30 years with providers paying out thousands of pounds more to new pensioners.

The contracts, which exchange a lump sum of savings for a guaranteed income until death, have staged a comeback as payouts jump up from all-time lows. This followed increases in the Bank Rate and subsequent rise in Government bond yields.

Income paid by annuities is priced off gilt, or UK government bond, yields. The higher the yield, the more someone buying an annuity receive each year until they die. Annuities have offered poor value for […]

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.