Aj Bell

Annuity rates could hit their lowest point for two years as the sovereign debt crises hits gilt yields.

The government is likely to review draft income drawdown rules forbidding the use of RPI-linked annuities for the minimum income requirement, specialist providers say.

Allowing early access to pension funds in some cases could place pensioners' beneficiaries at risk of a 55% tax charge, AJ Bell warns.

Prudential deputy chief executive Barry O'Dwyer has welcomed the Treasury's new draft rules for retirement options, but warns there may be problems ahead for value guaranteed annuities.