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98% of guaranteed annuity rate (GAR) policyholders back the package.
The annuity rate determines how much pension income you'll get from your lifetime savings.
Equitable's guaranteed annuity rate (GAR) liability, put at £1.5bn last summer, has now grown to £2bn.
That could include a return and annuity rate guaranteed by the government.
However, if this new pricing environment for gilts persists, then an annuity rate increase may be on the cards".
The only way to beat the annuity rate is to take risk by investing, for example, in equities.
Similar(37)
"The fall in annuity rates since mid-2008 is over 24%.
Current low annuity rates reflect low bond yields.
At first glance, annuity rates do not seem so miserly.
Benefits are linked to annuity rates, protecting both the scheme and the pensioners from annuity risk.
But the flipside of falling annuity rates is likely to be lower interest rates on mortgages.
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