How hard will Solvency II hit annuity rates?

Rarely a week goes by without some commentary on falling annuity rates. In a recent survey conducted with some of the country’s leading IFA annuity specialists, it revealed that 82% of them expect annuity rates to fall over the next five years.  In fact, one in four expect them to decline by between 7.5% and 10% over this period, and nearly one in five expect a fall of over 10%.  It is well documented that the key reasons for the falls are increased longevity and economic conditions. Another reason for future predicted falls is Solvency II. Solvency II rules are expected to be in forc...