Millions will see pensions slashed by up to 20% as new EU rules are set to send annuities plummetingJune 18, 2012
Source: Daily Mail
OAP with £100,000 pension pot could see retirement income plunge by £1,167 per year
New EU rules will force pension funds to hold more Government bonds
Annuities have already been pushed to historic lows because of Quantitative Easing
Millions of people could see the value of their pensions slashed by up to 20 per cent because of new EU rules.
Those with a £100,000 pension fund could be more than £1,100 per year worse off in retirement because of the reforms, research has shown.
The Solvency II rules, which are due to come into effect in January 2014, will force pension funds to hold a higher proportion of 'safe' Government bonds.
Historic lows: The returns on Government bonds have fallen to record lows - which will hit pensions when new EU reforms are brought in