| |
| 9 April 2021 last updated |
 |
| Latest Gilt Yields Chart |
|
| 15-year gilt yields - last 13 years |
| Based on figures for April 2021 |
 |
| |
15-year gilt yields chart is at 1.15% on 12 April 2021
Find out more details:
Monthly analysis of annuities and gilt yields
Annuity rates are based primarily on the 15-year gilt yields so changes in gilt yields will affect annuities. The above chart shows yields at an all time low of 0.162% on 9 March 2020 after concerns over a no-deal Brexit, the US-China trade tensions and fear of recession due to the Coronavirus.
The 15-year gilt yields had reduced significantly since June 2008 due to the financial crisis and this has had the effect of reducing annuity rates. |
|
|
|
As a general rule a 30 basis point rise in yields would increase annuities by 3.0% although the providers may take time to introduce these changes depending on their own strategies.
By 10 March 2021 yields were 367 basis points lower since July 2008 when they were 4.83% and on this basis annuity rates should have reduced by -36.7% compared to our benchmark example decreasing by -36.7%.
The 15-year gilt yield increased by 9 basis points to 1.23% during March 2021 with providers of standard annuities increasing rates by an average 1.73% for this month and we would expect rates to rise by 3.29% in the medium term if yields remain at current levels.
For smoker and enhanced annuity providers have increased their rates by an average of 6.11% and rates may fall by -1.34% in the medium term if yields remain at current levels.
For the latest updates see Annuity Rates Review. |
| |
 |
Annuity Rates Chart
Read the latest annuity rates review to find out if this is the best time to buy an annuity. |
| |
|
 |
Annuity Rates Changes
Find out about the latest changes in annuity rates and if they are rising or falling. |
|
 |
|
|
|
|
| Single |
 |
| |
55 |
£3,640 |
|
|
| |
60 |
£4,102 |
|
|
| |
65 |
£4,825 |
|
|
| |
70 |
£5,675 |
|
|
| Joint |
|
| |
55 |
£3,291 |
|
|
| |
60 |
£3,823 |
|
|
| |
65 |
£4,358 |
|
|
| |
70 |
£5,156 |
|
|
| £100,000 purchase, level and standard rates |
|
|
|
| Annuity Quotes |
| Ask for a free quote with up to 25% more income or 40% for impaired health. |
 |
Free quotes |
|
No obligation |
|
All providers |
|
 |
|
|
|
| Flex-Access Drawdown |
| • |
Take control of your money |
 |
| • |
Easy access |
 |
| • |
Tax free cash |
|
| • |
Family benefits |
|
| • |
Keep your fund |
|
 |
|
|
|
|
| Follow the latest annuity updates on Twitter or Facebook |
|
| |
 |
 |
|
|
|
|
