Rise expected in annuity rates

Posted in General

10th May 2010

The hung parliament may lead to a slight increase in annuity rates, but an expert has warned homeowners to consider their options – including equity release – before getting too excited.

Annuity rates have been falling constantly for a number of months, but no party having overall control at Westminster has led to gilt prices falling and yields rising. This should have a positive impact on annuity rates.

However, Craig Fazzini Jones of MGM Advantage has advised people to "shop around" to find the best deal for them in their retirement and "not [be] influenced by short-term market movements".

With house price rises expected to continue, many could be better off in the long-term if they release equity from their home.

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