Mark Soper – RetireEasy
In his speech last night, Sir Mervyn King stated that the silver lining of the global slowdown was falling inflation -CPI is now down to 3% from 5% a year ago. He went on to announce a huge two-pronged capital injection for the banks.
This surely must be a double-edged sword as although lower inflation is welcomed by retirees, for those approaching or in retirement and yet to buy an annuity, the Government’s monetary easing policy forces UK long-term gilt yields down and in turn annuity rates fall. A bold attempt to stimulate the UK economy ahead of more Euro strife but no respite for those in and saving for retirement.
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