Quantitative easing 'will hit annuities'

The Bank of England's decision to extend its quantitative easing (QE) programme by £50bn is bad news for people who are about to buy an annuity upon retiring.

That is according to Ros Altmann, director general at Saga and a former Downing Street pensions adviser.

Quantitative easing is viewed by the Bank of England as a way of boosting the UK economy.

But the interest rate consumers get on an annuity is linked to the rate the government pays on its debts - which is pushed down by QE.

BBC Breakfast's Steph McGovern gives some examples, before speaking to Dr Altman.

BBC News