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

4 September 2022 last updated

Gilt yields rise 87 basis points as investors expect base rates to rise

Gilt yields rise 87 basis points
Standard rates:  
annuity rates change 0.93%
Enhanced rates:  
annuity rates change 0.37%
Gilt yields:  
annuity rates change 87 basis point
  More annuity topics
  Second half 2022 news
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2024
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
15-year gilt yields chart - Based on figures for August 2022
Latest gilt yield chart

Annuity Rates UK - August 2022 review

After falls in 15-year gilt yields investors shrug off global recession fears and expect higher base rates from central banks. Yields rise 87 basis points to 3.19% during August 2022 to an eight year high.

Gilt yields are being driven higher as central banks increase base rates with interest rates in the US increasing 225 basis points to 2.33% this year and expected to rise 75 basis points in September 2022.

Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium in August stated inflation is still running near a 40 year high and the central bank will “use our tools forcefully”. The PCE index has reduced from 6.8% to 6.3% in August but remains high due to high energy costs.

Find related news here:
Retirement income at record high as gilts and pension annuities soar
Pension annuities fall as recession fears send gilts 27 basis points lower

Providers of standard annuities increased annuity rates by an average of 0.93% for this month and we would expect rates to rise by 7.77% in the short term if yields remain at current levels.

For smoker and enhanced annuity providers have decreased their rates by an average of 0.37% and we would expect rates to rise by 8.33% in the short term if yields do not fall.

Previous record increases for annuities in June 2022 may mean providers are more conservative about raising annuity rates in September.

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   60%
annuity rates no change   25%
annuity rates decrease   15%
Increases of:
max 3.9%


Decreases of:
max -4.0%

  Fig 1: Annuity rate changes for the whole market

For the month 60% of annuity rates increased by up to 3.9% with 25% remaining unchanged and 15% decreasing by as much as to -4.0%.

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 2.32% to 3.19% or +87 basis points. 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 - August 2022
Day Rate (%) Change (bp*)
1 2.21 -11
2 2.24 +3
3 2.27 +3
4 2.25 -2
5 2.42 +17
8 2.32 -10
9 2.33 +1
10 2.33 0
11 2.44 +11
12 2.53 +9
15 2.43 -10
16 2.51 +8
17 2.64 +13
18 2.66 +2
19 2.75 +9
22 2.87 +12
23 2.92 +5
24 3.01 +9
25 2.97 -4
26 2.97 0
29 2.96 -1
30 3.08 +12
31 3.19 +11
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points
News related stories:
Annuity rates rise by record 7pc last month as gilt yields weaken
Gilt yields fall 33 basis points off peak due to investor recession fears
Annuity Rates
  Age Single Joint  
  55 £5,736 £5,481  
  60 £6,132 £5,880  
  65 £6,860 £6,462  
  70 £7,678 £7,215  
£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 down 4pc with falling gilt yields
Annuity rates down -4pc Annuities are lower by -4.42% as gilt yields reduce -65 basis points at 3.95%
Annuity rates at risk with inflation at 3.9%
Annuity rates at risk Annuity rates are at risk with lower gilt yields and inflation falling to 3.9%
Gilt yields reduce by 53 basis points
Gilt yields reduce 53 basis points Gilt yields reduce to 4.60% after reaching a peak of 5.13% in October 2023
Annuities peak with lower gilt yields
Annuities reach the peak Annuities may have peaked as the Bank of England leaves interest rates unchanged
Pension annuities reduce by 3pc
Pension annuities reduce by 3% Pension annuities fall by -3% as gilt yields reach a fifteen year record high

  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 financial or legal advice, see about our services. Website security is by GeoTrust and Equifax. Copyright©2001-24 All Rights Reserved