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

6 September 2019 last updated

Gilt yields reduce to record lows as investors seek safe havens

Gilt yields reduce to record lows
Standard rates:  
annuity rates change 3.63%
Enhanced rates:  
annuity rates change 2.70%
Gilt yields:  
annuity rates change 27 basis point
  More annuity topics
  Second half 2019 news
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2019
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
15-year gilt yields chart - Based on figures for August 2019
Latest gilt yield chart

August 2019 Review

Standard annuity rates reduced by -3.63% for August following the -27 basis point fall in the 15-year gilt yields last month to 0.71%, the lowest level ever recorded on 16 August of 0.669%.

The lowest yield ever recorded was on 3 September at 0.566%.

Yields are lower due to the continuing trade tensions between the US and China with President Trump to apply tariffs on the all remaining Chinese imports. Other geopolitical concerns sent investors to safe havens with Boris Johnson to extend the suspension of Parliament until 14 October 2019 just a couple of weeks before the deadline for the UK to leave the EU.

The 15-year gilt yielddecreased by -27 basis points to 0.71% during August 2019 with providers of standard annuities decreasing rates by an average -3.63% for this month and we would expect rates to rise by 0.93% in the short term if yields remain at current levels.

For smoker and enhanced annuity providers have decreased their rates by an average of -2.70% and rates may remain level in the short term if yields do not fall.

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   0%
annuity rates no change   0%
annuity rates decrease   99%
Increases of:
max 0.0%


Decreases of:
max -7.9%

  Fig 1: Annuity rate changes for the whole market

For the month 0% of annuity rates increased by up to 0% with 0% remaining unchanged and 100% decreasing by up to -7.9%.

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 0.71% to 0.71% or 0 basis point. Fig 2 below shows the daily 15-year gilt yields and the increase or decrease from the previous day's close:

15-Year Gilt Yields - August 2019
Day Rate (%) Change (bp*)
1 0.95 -3
2 0.91 -4
5 0.86 -5
6 0.85 -1
7 0.81 -4
8 0.85 +4
9 0.82 -3
12 0.83 +1
13 0.81 -2
14 0.74 -7
15 0.70 -4
16 0.73 +3
19 0.76 +3
20 0.73 -3
21 0.75 +2
22 0.81 +6
23 0.79 -2
26 0.80 +1
27 0.74 -6
28 0.68 -4
29 0.67 -1
30 0.71 +4
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points

News related stories:
UK enhanced annuities rise with stronger data from China and eurozone
Enhanced annuity rates down over 3% as investors seek safe havens
Annuities fall with lower gilt yields after Brexit uncertainty
UK annuities could rise as investors leave safe havens
Gilt yields rise as Trump delays tariff on $200bn China trade
Annuity Rates
  Age Single Joint  
  55 £3,947 £3,702  
  60 £4,391 £4,052  
  65 £5,098 £4,638  
  70 £6,055 £5,457  
£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:

Gilt yields rise with US-China trade deal
Gilt yields rise with US-China trade deal

15-year gilt yields rise 14 basis points with annuity rates up for the second month

Providers increase annuity rates by 5%
Providers increase annuity rates Standard annuities rise over 5% with gilt yields recovering from all time lows
Cash annuity offer 14% more income
Purchased life annuity better value Purchased life annuities offer 14% more income than pension annuity
Impaired annuities rise with higher yields
Impaired annuities up 1.5% Impaired annuity rates from providers rise 1.5% with prospect of Brexit deal
Gilt yields rise and Trump delays tariff
Yields recover from all time low

Yields recover from a low as Donald Trump considers limited trade deal with China

  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 specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-20 All Rights Reserved