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| 20 January 2021 last updated |
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| Latest Gilt Yields Chart |
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| 15-year gilt yields - last 13 years |
| Based on figures for January 2021 |
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15-year gilt yields chart is at 0.51% on 19 January 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. |
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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 1 January 2021 yields were 443 basis points lower since July 2008 when they were 4.83% and on this basis annuity rates should have reduced by -44.3% compared to our benchmark example decreasing by -39.3%.
The 15-year gilt yield decreased by 13 basis points to 0.40% during December 2020 with providers of standard annuities decreasing rates by an average -1.19% for this month and we would expect rates to fall by -0.11% in the short term if yields remain at current levels.
For smoker and enhanced annuity providers have reduced their rates by an average of -2.15% and rates may rise by 0.85% in the short term if yields remain at current levels.
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 |
£3,640 |
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60 |
£4,102 |
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65 |
£4,825 |
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70 |
£5,675 |
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| Joint |
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55 |
£3,291 |
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60 |
£3,823 |
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65 |
£4,358 |
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70 |
£5,156 |
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| £100,000 purchase, level and standard rates |
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