IFA Chartwell warns that annuity rates have peaked

IFA Chartwell has warned that annuity rates, which have been rising in response to increases in Bank...

IFA Chartwell has warned that annuity rates, which have been rising in response to increases in Bank of England base rates and improving returns on long-term gilts, have now reached their peak. This is because life offices such as Legal & General, Norwich Union and Prudential have dropped their rates in response to improving life expectancy. Annuities manager Sean McCabe said: "The view for long-term gilts is relatively stagnant, meaning there is little scope for further annuity rate increases at the moment. "With the majority of life offices now entering the phase where they re-assess th...