Quantitative easing 'will hit annuities'
The Bank of England's decision to extend its quantitative easing (QE) programme by £50bn is bad news for people who are about to buy an annuity upon retiring.
That is according to Ros Altmann, director general at Saga and a former Downing Street pensions adviser.
Quantitative easing is viewed by the Bank of England as a way of boosting the UK economy.
But the interest rate consumers get on an annuity is linked to the rate the government pays on its debts - which is pushed down by QE.
BBC Breakfast's Steph McGovern gives some examples, before speaking to Dr Altman.
09 Feb 2012
- From the section Business