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


10 March 2021 last updated

Gilt yields rise record amount of 60 basis points on inflation fears

Gilt yields record rise
 
Standard rates:  
annuity rates change 3.22%
Enhanced rates:  
annuity rates change 2.56%
Gilt yields:  
annuity rates change 60 basis point
 
  More annuity topics
  First half 2021 news
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2021
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
 
 
15-year gilt yields chart - Based on figures for February 2021
Latest gilt yield chart

February 2021 Review

The 15-year gilt yields have increase by a record 60 basis points in February to 1.14% as investors fear inflation rise as countries exit lockdown rules later this year.

This is the highest level gilt yields have reached since June 2019 and providers have increased annuity rates. There is the potential of further increases in rates if yields can maintain the current rise.

Find related news here:
Gilt yields fall with more Covid-19 cases sending annuity rates lower
Successful vaccine for Covid-19 sends gilt yields higher

Providers of standard annuities increased annuity rates by an average of 3.22% for this month and we would expect rates to rise by 2.78% in the short term if yields remain at current levels.

For smoker and enhanced annuity providers have increased their rates by an average of 2.56% and rates and we would expect rates to rise by 3.44% 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   100%
annuity rates no change   0%
annuity rates decrease   0%
Increases of:
max 7.4%

 

Decreases of:
max -0.0%

  Fig 1: Annuity rate changes for the whole market


For the month 100% of annuity rates increased by up to 7.4% with 0% remaining unchanged and 0% decreasing by as much as to -0.0%.

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


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 the latest updates see Annuity Rates Review.

Changes to the 15-year gilt yields

The yields change for the month from 0.54% to 1.14% or 60 basis point. Table 1 below shows the daily 15-year gilt yields and the increase or decrease from the previous day's close:


15-Year Gilt Yields - February 2021
Day Rate (%) Change (bp*)
1 0.54 0
2 0.57 +3
3 0.59 +2
4 0.66 +7
5 0.72 +6
8 0.70 -2
9 0.68 -2
10 0.71 +3
11 0.69 -2
12 0.75 +6
15 0.81 +6
16 0.86 +5
17 0.80 -6
18 0.86 +6
19 0.93 +7
22 1.04 +11
23 1.10 +5
24 1.12 +2
25 1.16 +4
26 1.14 -2
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points

News related stories:
Annuities set to rise 3pc as yields boosted by higher inflation forecast
Annuity rates higher as investors more optimistic for the economy
Annuity rates could rise as gilt yields bounce back with vaccine results
Annuity Rates
  Age Single Joint  
  55 £3,620 £3,320  
  60 £4,081 £3,783  
  65 £4,786 £4,382  
  70 £5,656 £5,102  
£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:

Annuities set to rise 3% due to inflation
Annuities set to rise 3% Annuity rates to rise 3% as yields up 35 basis points after inflation forecast
Annuity rates higher with rising yields
Annuity rates higher Providers have increased annuity rates with rising gilt yields up 14 basis points
Gilt yields fall sending annuity rates lower
Gilt yields fall with more Covid-19 cases Annuity rates reduce as cases of Covid-19 rise with record numbers recorded
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

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook 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©2001-21 Sharingpensions.co.uk. All Rights Reserved