Bureau warns against gambling on annuities

Annuity Bureau managing director Peter Quinton has warned against retirees delaying annuity purchase...

Annuity Bureau managing director Peter Quinton has warned against retirees delaying annuity purchase in hope of better returns despite rate increases from providers in recent months. With annuities backed by corporate bonds and gilts, Quinton points to current volatility in yields that could mean people lose out if they gamble on rates increasing in the future. Gilt yields went to 4.96% on 21 April for example, up from 4.75% on 1 April, falling back to 4.89% just two days later. Quinton said the annuity rate increases are in part due to data coming from the US non-farm payroll improving,...