Some good news ! The credit crunch is having some benefit… to those people retiring and taking their annuities.

Technically, with the credit crunch the value of corporate bonds has fallen whilst the value of bond yields has risen. Annuity companies invest heavily in corporate bonds, so annuity rates have surged. Annuity rates increased by more than 6% for everyone in 2007.

So, if you are considering delaying taking your annuity, you might want to think twice. Now could be a good time. Any further cuts in interest rates could have a negative effect on annuity rates.

This entry was posted on Wednesday, May 14th, 2008 at 9:44 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.