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| 11 January 2019 last updated |
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| Latest Gilt Yields Chart |
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| 15-year gilt yields - last 11 years |
| Based on figures for Janiuary 2019 |
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15-year gilt yields chart is at 1.50% on 11 January 2019
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 reached an all time low of 0.90% on 11 August 2016 after an interest rate cut to 0.25% and £70 billion of quantitative easing.
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. |
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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 January 2019 yields were 333 basis points lower since July 2008 when they were 4.83% and on this basis annuity rates should have reduced by -33.3%. Our benchmark example has decreased by -29.6% suggesting annuity rates could decrease by -3.7% in the long term.
The 15-year gilt yield decreased 13 basis points to 1.50% during December 2018 with providers of standard annuities increasing rates by an average 0.10% for this month and we would expect rates to fall by -1.40% in the short term if yields do not fall.
For smoker and enhanced annuity providers have increased their rates by an average of 0.18% and rates may fall by -1.48% in the short term if yields do not fall.
For the latest updates see Annuity Rates Review. |
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Annuity Rates Chart
Read the latest annuity rates review to find out if this is the best time to buy an annuity. |
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Annuity Rates Changes
Find out about the latest changes in annuity rates and if they are rising or falling. |
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| Single |
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55 |
£4,433 |
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60 |
£4,914 |
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65 |
£5,563 |
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70 |
£6,272 |
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| Joint |
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55 |
£4,127 |
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60 |
£4,660 |
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65 |
£5,094 |
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70 |
£5,976 |
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| £100,000 purchase, level and standard rates |
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