An interesting one this; not necessarily as expected. Yes, we are seeing the first signs that insurance companies are cutting their annuity rates as Aegon makes a small reduction.
However, that is not the end of the story. In a surprise move Prudential, another significant annuity player, increased its annuity rates by over 3% to reverse the cuts it made last week. This takes a bit of understanding in the current climate of reducing interest rates.
It could be that in the run up to the end of the year they want to increase new business figures, particularly in the area of annuities, or maybe I am being too cynical.
Anyway, any increase in pension annuity rates is good news for retirees.
