Annuity Rates, Annuities, Pensions, Divorce Annuity Rates Charts
Home News Annuity Rates Annuities Pension Annuity Impaired Annuity Annuity Quotes Pensions Divorce Resources

9 March 2017 last updated
Gilt yields fall as investors react to political uncertainty in Europe
15-year gilt yields chart
Based on figures for February 2017
Latest gilt yield chart

Uncertainty about European politics sees investors buy gilts and bonds sending the price higher and yields lower with annuity rates falling from their recant high for the year.

Standard rates:  
annuity rates up 1.91%
Enhanced rates:  
annuity rates up 0.51%
Gilt yields:  
annuity rates up 29 basis point

  More annuity topics
  Quarter 1 News 2017
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2022
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates

Annuities fall after five month run of increases

The 15-year gilt yields decreased by 29 basis points to 1.50% during the month and the lowest point since October 2016. Gilt yields reduced due to uncertainty over political uncertainty in Europe, wage data in the US pointing to lower inflation and worries over President Trump's economic policies.

Standard providers decreased rates by an average of -1.91% and we would expect in the short term rates may decrease further by -0.99%.

For smoker and enhanced annuity providers increased their rates by an average of -0.44% on average and in the short term rates may increase by -2.46%.

Fig 1 below shows the annuity rates changes for the whole market and the proportion that have either increased, decreased or or did not change. It also shows the range of the changes of the annuity rates over the last month:

Annuity Rates Changes
Increase No change Decrease
annuity rates decrease   38%
annuity rates no change   3%
annuity rates decrease   59%
Increases of:
up to 4.3%

  Decreases of:
up to 3.6%
  Fig 1: Annuity rate changes for the whole market

For the month of February 38% of annuity rates increased by up to 4.3% with 3% remaining unchanged and 59% decreasing by no more than 3.6%.

What happened to standard rates

Below shows a fund of £100,000 with the change in standard annuity rates for single and joint pensioners from age 55 to 75 with different annuity options such as level or escalating over 1 month compared to gilt yields:

Standard annuity 1 month changes
Fig 2: Change in standard rates last month compared to gilt yields

Standard annuities decreased by an average of -1.91% during the month. For those aged 55 to 60 buying a single life or joint life on a level basis with decreases of up to -3.6%. The highest increase was for those aged 55 with 50% joint life and 3% escalating rate increasing by 4.3%.

What happened to enhanced rates

Lifestyle smoker and enhanced annuities have decreased significantly across the board for all types of annuities and ages.

Enhanced annuity 1 month changes
Fig 3: Change in enhanced rates last month compared to gilt yields

For enhanced and smoker providers rates decreased by an average of -0.44% with a larger fall of -3.2% for those aged 55 to 60 buying 50% joint life, level annuity. The highest increase was for those aged 55 with 50% joint life and 3% escalating rate increasing by 3.0%.

For the latest updates see Annuity Rates Review.

Changes to the 15-year gilt yields

The yields change for the month was from 1.79% to 1.50% or 29 basis points. Fig 2 below shows the daily 15-year gilt yields and the increase or decrease from the previous day's close:

15-Year Gilt Yields - February 2017
Day Rate (%) Change (bp*)
1 1.82 +3
2 1.78 -4
3 1.76 -2
6 1.73 -3
7 1.70 -3
8 1.63 -7
9 1.65 +2
10 1.67 +2
13 1.70 +3
14 1.72 +2
15 1.71 -1
16 1.67 -4
17 1.63 -4
20 1.66 +3
21 1.66 0
22 1.64 -2
23 1.59 -5
24 1.51 -8
27 1.51 0
28 1.50 -1
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points

News related stories:
Annuity income increases up to 18% in five months since all time low
Annuities up 7% as yields recover after election of Donald Trump
Enhanced annuity rates up 2.4% as gilt yields recover from Brexit
UK annuities could rise 5% as US bond selloff sends yields higher
Annuity Rates
  Age Single Joint  
  55 £3,851 £3,569  
  60 £4,268 £3,973  
  65 £4,965 £4,581  
  70 £5,831 £5,274  
£100,000 purchase, level rates, standard
Unisex rates and joint life basis
  Annuity Rates  
Annuity Quotes
  Plan your annuity and get quotes from the 12 leading providers  
  free annuity quote Free Annuity Quotes
  annuity quote no obligation No Obligation
  annuity quote all providers From All Providers
  Annuity Quote  
  Annuity Rates News:

Annuity rates decrease with Omicron
Annuity rates decrease due to Omicron variant Annuity rates fall up to -4.8% with lower gilt yields due to fears over Omicron
Pension annuity could fall 1pc due to Covid
Pension annuities could fall with Omicron variant New Covid variant Omicron reduce yields and pension annuities could fall 1pc
Purchased life annuity 20pc more income
Purchased life annuity 20% more income Purchased life annuity offers 20pc more net income to taxpayers than pension annuity
Annuities rise even after gilt yields fall
Pension annuities rise up to 2.67% Pension annuities fall by 2.67% even though gilt yields reduced by 9 basis points
Care funding may not start until 2026
Gilt yields rise as Fed signals tapering Government's care funding will not start until the 86,000 care cap is reach

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook Page Twitter Page   This website is for marketing purposes only and does not provide specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-22 All Rights Reserved