Pensions - Articles - A J Bell comments on quantitative easing on pension incomes

 Billy Mackay, A J Bell Marketing Director, said:

 "The need to stimulate the economy is only too clear but an unfortunate side-effect of quantitative easing is that it will result in another cut in pensioners' income at a time when they can ill afford it.

 "This comes as a real blow because gilt yields were already at record lows before this £75bn stimulus package was announced. It's entirely feasible that this will lead to further falls and heartache for people reviewing their pension drawdown or considering buying an annuity.

 "Everybody appreciates the need for action on the fiscal challenges the Government faces. However, you can't ignore the impact of unintended consequences and action is needed to address this issue. We have been calling for changes to the drawdown income rules, this only adds fuel to that argument."