Pensioners retiring today are 62% worse off than those who retired 20 years ago because of falling gilt yields.
Annuity rates have fallen across the board for December as gilt yields have plunged to record lows.
The Cautious Managed sector accounted for more than half of total sales on Cofunds in October in its best-ever monthly showing as advisers continue to favour outsourcing solutions.
Historically low gilt yields have driven down the incomes available via annuities or drawdown by almost a quarter, Skandia said.
The lastest round of quantitative easing (QE) has made gilts more expensive and may drive international bond investors to cash in on the asset class, fund managers warns.
The latest round of quantitative easing (QE) sparked a surprise rise in gilt yields yesterday, despite fears of long-term falls which could increase pension scheme liabilities.
Incomes from annuities have fallen 14% since the start of the year due to stock market turmoil.
Inflation climbed marginally in August as expected, driven up by higher utility bills.
Maria Merricks asks top investment managers which vehicles offer the best opportunities.
The Debt Management Office is considering launching index-linked gilts with a maturity of 50 years in October after the idea of a new batch of ultra-long bonds was proposed to investors.