Annuity Rates, Annuities, Pensions, Divorce Free Fixed Term Quote
Home News Annuity Rates Annuities Pension Annuity Impaired Annuity Annuity Quotes Pensions Divorce Resources
   


2 April 2018 last updated
Gilt yields fall after Donald Trump unveils trade tariffs on China
15-year gilt yields chart
Based on figures for March 2018
Latest gilt yield chart
 

Gilt yields fall as investors fear economic uncertainty as President Donald Trump unveiled $50 billion of trade tariffs on Chinese imports and possible reciprocal measures being imposed.

Standard rates:  
annuity rates change 0.16%
Enhanced rates:  
annuity rates change 0.02%
Gilt yields:  
annuity rates change 17 basis point



 
  More annuity topics
  Quarter 2 News 2018
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2016
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
 

Investors seek safe havens with tariff threats

The 15-year gilt yield increased by 9 basis points to 1.67% during April 2018 with providers of standard annuities decreasing rates by an average -0.92% for this month and we would expect rates to rise by 1.82% in the short term if yields do not fall.

For smoker and enhanced annuity providers have decreased their rates by an average of -1.30% and rates may rise by 2.20% in the short term if yields do not fall.


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   14%
annuity rates decrease   48%
Increases of:
up to 1.3%

 

Decreases of:
up to -1.8%

  Fig 1: Annuity rate changes for the whole market


For the month of February 38% of annuity rates increased by up to 1.3% with 14% remaining unchanged and 48% decreasing by up to -1.8%.

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 -0.16% during the month. The largest rise was for those aged 60 based on a 100% joint life rates up by 1.03% for the month with the largest decrease for those aged 55 on a single life basis down -1.86%.

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 the majority of rates increased by only 0.02% for the month on average. The largest rise was for those aged 70 based on a 100% and 50% joint life rates up by 1.30% for the month with the largest decrease for those aged 55 on a 50% joint life and 3% escalating basis down -1.32%.

For the latest updates see Annuity Rates Review.

Changes to the 15-year gilt yields

The yields change for the month from 1.75% to 1.58% or -17 basis point. 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 - March 2018
Day Rate (%) Change (bp*)
1 1.73 -2
2 1.73 0
5 1.76 +3
6 1.77 +1
7 1.75 -2
8 1.73 -2
9 1.76 +3
12 1.76 0
13 1.74 -2
14 1.68 -6
15 1.67 -1
16 1.66 -2
19 1.66 0
20 1.69 +3
21 1.72 +3
22 1.65 -7
23 1.66 +1
26 1.65 -1
27 1.64 -1
28 1.60 -4
29 1.58 -2
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points


News related stories:
Annuities rise up to 5% with higher yields from US economic growth
Retirement income up 33% since Brexit vote and highest for ten years
Annuity rates rise to highest for the year as yields remain level
Pension annuity providers reduce rates despite interest rate rise
Annuity Rates
  Age Single Joint  
  55 £4,358 £4,209  
  60 £4,839 £4,644  
  65 £5,613 £5,193  
  70 £6,292 £5,860  
£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:

UK annuities risk fall with trade tariffs
UK annuities risk fall as yields decrease Annuities may fall after Trump unveils $50 billion of trade tariffs on Chinese imports
Annuity rates rise to highest of the year
Annuity rates rise to highest level for 2017 Competition from providers sees annuity rates rise to the highest point the year
Annuities set to rise with ECB signal
Pension annuities set to rise The ECB has signaled the end of cheap money sending gilt yields higher
Best annuity rates fall with lower yields
Best annuity rates fall Best annuity rates reduced by 1.91% following political uncertainty

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook and Google+
  Facebook Page Twitter Page Twitter Page
Sharingpensions.co.uk   This website is for marketing purposes only and does not provide specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-18 Sharingpensions.co.uk. All Rights Reserved