10 February 2009
Alexander Forbes Annuity Bureau has noted a fall in annuity
rates across most pension providers, but also found that many have
increased their rates on retail price-indexed products.
Director, David Marlow said: "Level annuity rates have continued
to fall this month and there may still be further cuts ahead. While
it is refreshing to see retail price index linked rates improve
slightly, most retirees cannot afford to include guaranteed
inflation-proofing. This is a time bomb in the retirement market
due to longer retirement periods and the uncertainty over future
inflation."
