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


7 January 2019 last updated
Gilt yields lower as equities fall sharply with geopolitical tensions
15-year gilt yields chart
Based on figures for December 2018
Latest gilt yield chart
 

December 2018 Review

Gilt yields are lower for the month as investors retreat from equity markets following geopolitical tension between the US and China.

Standard rates:  
annuity rates change 0.10%
Enhanced rates:  
annuity rates change 0.18%
Gilt yields:  
annuity rates change 13 basis point



 
  More annuity topics
  First half 2019 news
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2024
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates
 

Equities fall with fears for 2019 slowdown

Continued geopolitical tension between the US and China with a fears of a slowdown in the US economy has seen investors leave equities and back to the safety of bonds and gilts forcing yields lower.

The 15-year gilt yield decreased by 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 decrease 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.

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   50%
annuity rates no change   23%
annuity rates decrease   27%
Increases of:
up to 1.2%

 

Decreases of:
up to -2.7%

  Fig 1: Annuity rate changes for the whole market


For the month 50% of annuity rates increased by up to 1.2% with 23% remaining unchanged and 27% decreasing by up to -2.7%.

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 1.63% to 1.50% or 13 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 - December 2018
Day Rate (%) Change (bp*)
3 1.56 -7
4 1.50 -6
5 1.53 +3
6 1.46 -7
7 1.46 0
10 1.36 -10
11 1.39 +3
12 1.49 +10
13 1.51 +2
14 1.45 -6
17 1.46 +1
18 1.46 0
19 1.49 +3
20 1.48 -1
21 1.52 +4
24 1.47 -5
27 1.51 +4
28 1.48 -3
31 1.50 +2
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points


News related stories:
Retirement income down 14% with falls in equity and gilt yields
Annuity income hit by volatility in global equity and gilts market
Pension annuities fall as US tariffs creates economic uncertainty
Annuities could rise 1.6% as gilt yields recover on central bank plans
Annuity Rates
  Age Single Joint  
  55 £5,736 £5,481  
  60 £6,132 £5,880  
  65 £6,860 £6,462  
  70 £7,678 £7,215  
£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:

Annuities down 4pc with falling gilt yields
Annuity rates down -4pc Annuities are lower by -4.42% as gilt yields reduce -65 basis points at 3.95%
Annuity rates at risk with inflation at 3.9%
Annuity rates at risk Annuity rates are at risk with lower gilt yields and inflation falling to 3.9%
Gilt yields reduce by 53 basis points
Gilt yields reduce 53 basis points Gilt yields reduce to 4.60% after reaching a peak of 5.13% in October 2023
Annuities peak with lower gilt yields
Annuities reach the peak Annuities may have peaked as the Bank of England leaves interest rates unchanged
Pension annuities reduce by 3pc
Pension annuities reduce by 3% Pension annuities fall by -3% as gilt yields reach a fifteen year record high

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook
  Facebook Page Twitter Page
Sharingpensions.co.uk   This website is for marketing purposes only and does not provide financial or legal advice, see about our services. Website security is by GeoTrust and Equifax. Copyright©2001-24 Sharingpensions.co.uk. All Rights Reserved