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This further drop of the interest rate to unprecedented low levels and the additional injection of quantitative easing are likely to put downward pressure on annuity rates".
The ABI added that the recent cut in the Bank of England base rate and the introduction of further quantitative easing will place even more pressure on annuity sales.
Moneyfacts said that lower demand for annuities in the wake of the pension freedoms and a sharp fall in gilt yields, which are a major influence on annuity rates, were factors behind the latest downturn.
"Unfortunately, record low gilt yields following the EU referendum result, the impact of Solvency II legislation and a significant weakening of competition in the annuity market have all exerted considerable downward pressure on annuity rates during 2016".
"While the withdrawal of FLS could result in mortgages becoming more expensive, bearing in mind the type assets backing annuity businesses we do not believe that this will have a fundamental affect on annuity rates," he says.
"Because of this directive and other pressures on annuity rates, if you are a man who is planning on buying an annuity within the next few months, you'd be crazy to delay until after 21 December," says Tom McPhail, head of pensions research at Hargreaves Lansdown".For women the impact is harder to assess.
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You can always hedge your bets and buy more than one annuity: for example, you could spend £150,000 on an ordinary level annuity and £75,000 on an investment-linked annuity.
For more on annuities, the Securities and Exchange Commission offers some basic information on one part of its Web site and more specific guidance on variable annuities as well.
Early on, the knock on annuities was that once you died, the money was gone.
It will take less time for the same recognition to dawn on annuities.
Since Brexit, the rates of income paid on annuities have fallen to record lows.
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CEO of Professional Science Editing for Scientists @ prosciediting.com