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

8 January 2018 last updated
Falling gilt yields send annuities lower to start the new year
15-year gilt yields chart
Based on figures for December 2017
Latest gilt yield chart

Providers reduce the majority of annuities both standard, smoker and enhanced for the start of the new year as the 15-year gilt yields fall 13 basis points.

Standard rates:  
annuity rates change 1.09%
Enhanced rates:  
annuity rates change 0.25%
Gilt yields:  
annuity rates up 13 basis point

  More annuity topics
  Quarter 1 News 2018
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2021
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates

Providers reduce 76% of annuities

The 15-year gilt yield reduce by 13 basis point to 1.50% during the month with providers of standard annuities decreasing rates by -1.09% for this month and we would expect rates to decrease by a further -0.21% in the short term.

For smoker and enhanced annuity providers lowered their rates by an average of -0.25% and rates may decrease by a further -1.05% in the short term.

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   22%
annuity rates no change   2%
annuity rates decrease   76%
Increases of:
up to 3.2%


Decreases of:
up to -3.1%

  Fig 1: Annuity rate changes for the whole market

For the month of December 22% of annuity rates increased by up to 3.2% with 2% remaining unchanged and 76% decreasing by as much as -3.1%

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 -1.09%% during the month. The largest fall was for those aged 55 based on single and joint life for both level and escalating rates decreasing by -2.89% for the month. The largest increase was for those aged 70 on a single life basis up 3.25% for the month.

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 decreased by -0.25% for the month on average. The largest fall was for those aged 55 on a 50% joint life, 3% escalation the rates reduced by -3.14% whereas the largest increase was for those aged 60 on a single life 3% escalating basis.

For the latest updates see Annuity Rates Review.

Changes to the 15-year gilt yields

The yields change for the month from 1.63% to 1.50% or 13 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 - December 2017
Day Rate (%) Change (bp*)
1 1.55 -8
4 1.60 +4
5 1.58 -2
6 1.55 -3
7 1.57 +2
8 1.60 +3
11 1.53 -7
12 1.54 +1
13 1.53 -1


15 1.45 -3
18 1.46 +1
19 1.53 +6
20 1.56 +3
21 1.58 +2
22 1.56 -2
27 1.50 -6
28 1.51 +1
29 1.50 -1
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points

News related stories:
Annuity rates rise to highest for the year as yields remain level
Pension annuity providers reduce rates despite interest rate rise
Enhanced annuity rates up as central banks signal interest rate rise
Latest annuity rates could fall as US and North Korea uncertainty grows
Annuity Rates
  Age Single Joint  
  55 £3,640 £3,291  
  60 £4,102 £3,823  
  65 £4,825 £4,358  
  70 £5,675 £5,156  
£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:

Retirement income bounces back
Retirement income bounces back Retirement income from invested pensions bounces back 16.5% since October
Covid-19 vaccine sends gilt yields higher
Equity markets rise 14% Drugs company Pfizer and BioNTech announce successful vaccine results
Equity markets rise 14% on vaccine results
Equity markets rise 14%

Equity markets up as new Covid-19 vaccine could end uncertainty for economy

Annuity rates could rise with new vaccine
Annuity rates could rise

Annuity rates could rise as drug companies reveal successful Covid-19 vaccine

Annuity risk fall with Covid-19 restrictions
Gilt yields fall on Covid-19 fears 15-year Gilt yields fall to 0.39% due to rising Coronavirus cases in Europe

  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©2001-20 All Rights Reserved