Enhanced annuities rise 2pc with higher gilt yields after Trump strikes Iran

15-year gilt yields chart - Based on figures for July 2026

Annuity Rates UK - July 2026 review

Enhanced annuities increased by over +2% as 15-year gilt yields rise +30 basis points after Iran closes the Strait of Hormuz and President Trump orders US military strikes.

Gilt yields increased from 5.16% to as high as 5.50% by 23 July 2026 as the US strikes 140 military targets in Iran on 12 July as both sides claim the other has breached the Memorandum of Understanding (MOU).

After 13 nights of US forces striking Iran, President Trump paused the attacks to give the negotiations a chance of success with gilt yields reducing to end the month at 5.46%.

About 90% of annuity rates increased by up to +2.9% and only 10% reduced during July 2026 with those retiring to take secure income benefiting from current geopolitical uncertainty.

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Providers of standard annuities increased rates by an average of +0.32% this month and we would expect rates to rise by +2.68% in the short term if yields remain at current levels.

For smoker and enhanced annuity providers increased their rates by an average of +2.04% and we would expect rates to rise by +0.96% in the short term if yields remain at current levels.

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   90%   0%   10% Increases of: max 2.9%   Decreases of: max 2.4 %

Fig 1: Annuity rate changes for the whole market

Fig 2: Change in standard rates last month compared to gilt yields

Fig 3: Change in enhanced rates last month compared to gilt yields