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back to annuity rates november
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Annuity Rates Chart for November 2011
Fig 1 below shows the change in annuity rates chart over the last 12 months and the rate for
November 2011: |
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| Annuity Rates Chart for £100,000, male, age 65, single, level |
| Latest rate: |
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1 month change: |
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3 month change: |
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6 month change: |
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1 year change: |
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| £5,972 pa |
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£121 / 2.0% |
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£403 / 6.3% |
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£834 / 12.2% |
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£542 / 8.3% |
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| Fig 1: Annuity rates chart of income for 12 months to November 2011 |
The annuity rates chart in fig 1 is our benchmark example with £100,000 to purchase an annuity for a 65 year old male on a single life, level and no guaranteed period.
For November 2011 it shows that the annuity rates chart our benchmark has reduced by £121 pa since 31 October to the current level of £5,972 pa reached on 14 November 2011. During October the 15-year gilt yields reduced by 1 basis point and
our benchmark example reduced by 0.1% which matches this fall. As a general rule a 50 basis point change in the gilt yields will result in a 5% change in the annuity rates so the providers corrected the annuity rates exactly for our benchmark example. Across the board standard annuity rates reduced by 0.40% with some annuities down 2.0% so on average annuity rates have reduced beyond the gilt yield fall. This offsets September where standard annuity rates did not decrease as much as expected. For November the 15-year gilt yields have reduced by 25 basis points and our benchmark annuity rates has reduced by 2%. This suggests that a 0.5% reduction is still possible for this annuity rate.
The slight reduction in the standard annuity rates chart is in contrast with smoker annuity rates which increased in October by 0.36% with some annuities up 2.25%, in particular younger females aged 55 and males aged 55 also benefited with increases of up to 1.4%.
There are risks that the Greek referendum expected in early December will create more volatility. This could further reduce the annuity rates for the end of the year if the rescue plan devised by the Eurozone cannot be implemented. |
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