Not too long ago Japan was hit with a big earthquake and a Tsunami. The Middle East is fighting for democracy. So how does this affect the annuity rates? Well, at the beginning of the year things were looking hopeful that the annuity rates would rise because everything was going very smoothly. It was not until the event in Japan happened that everyone noticed a change in the annuity rates.
Because of the events in Japan and the Middle East, annuity rates have fallen some from the beginning of the year. 15 year gilt yields were at 3.8% at the first of the year. They rose slightly to 4.3%. Since the events have taken place, the yields have fallen to 3.93% since this month.
Now that Japan is on the mend, many are hoping that the rates will once again rise and continue rising. It is amazing to see how an event such as this can make a change in something like annuity rates.
People look to annuities because it is income they know they will get for their retirement. When people are cut short on retirement funds, it hurts them in the long run because it makes it harder for them to be able to survive financially
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