The Bank of England's quantitative easing initiative is having a detrimental effect on pensions, it has been claimed.

Last week (February 9th), the Monetary Policy Committee (MPC) elected to extend the scheme by £50 billion, taking it to £325 billion in a bid to revive the ailing economy.

It is hoping that this measure will reduce the likelihood that Britain will fall into a double dip recession. 

However, critics have suggested that the short term benefit of quantitative easing will be damaging to savers and pensioners over the long term.

This is because quantitative easing can have a negative effect on annuity rates, as yields on gilts and corporate bonds - which are used to back annuity investments - fall as the government injects more money into the economy. 

These recent developments help highlight the need for people to shop around for the best annuity rates in the current climate to ensure they get the best deal.