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Have we reached peak annuity rates?

woolly_wombat · 2023-08-25 16:43:23

Now that the higher interest rate medicine appears to be working and gilt yields are slightly down, does it look as though annuity rates have peaked for now? OH had a surprisingly good annuity estimate from Legal and General via moneyhelper, but when he went to the L&G website he got a slightly lower estimate using the…

Comments

Bostonerimus1 Posts: 2,030 Forumite

Today at 6:09PM

I don't think we are at peak annuity rates. Inflation is increasing and bond markets seem to be reacting to that and current geo-political risks in a more understandable way than equity markets. In the US 30 year T-bills are at 5% and will likely keep rising as the Fed is predicted to raise rates to combat inflation. I think the same story will paly out in the UK, so I see annuity rates increasing too.

And so we beat on, boats against the current, borne back ceaselessly into the past.
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