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


5 October 2020 last updated

Fear of new Covid-19 restrictions in Europe sends gilt yields lower

Gilt yields fall on Covid-19 fears
 
Standard rates:  
annuity rates change 0.34%
Enhanced rates:  
annuity rates change 0.19%
Gilt yields:  
annuity rates change 11 basis point
 
  More annuity topics
  Second half 2020 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
 
 
15-year gilt yields chart - Based on figures for September 2020
Latest gilt yield chart

September 2020 Review

Investors fear increasing cases of Covid-19 in Europe will result in further lockdown restrictions being implemented and impacting the economy with 15-year gilt yields 11 basis points lower.

Find related news here:
Retirement annuities rise up to 2.4pc as investors sell-off bonds and gilts
Gilt yields lower with concern of global economy as Covid-19 cases rise
Annuity rates risk falling as rise in Covid-19 cases slows recovery

The 15-year gilt yields decease by 11 basis points to 0.45% during September as investors fear the rise in Covid-19 cases in Europe could see further lockdowns.

Providers of standard annuities reduced annuity rates by an average of 0.34% for this month and we would expect rates to fall by -0.76% in the short term if yields remain at current levels.

For smoker and enhanced annuity providers have reduced their rates by an average of -0.19% and rates and we would expect rates to fall by -0.91% 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   6%
annuity rates no change   14%
annuity rates decrease   80%
Increases of:
max 2.8%

 

Decreases of:
max -1.6%

  Fig 1: Annuity rate changes for the whole market


For the month 6% of annuity rates increased by up to 2.8% with 14% remaining unchanged and 80% decreasing by as much as to -1.6%.

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 0.56% to 0.45% or 11 basis point. Table 1 below shows the daily 15-year gilt yields and the increase or decrease from the previous day's close:


15-Year Gilt Yields - September 2020
Day Rate (%) Change (bp*)
1 0.55 -1
2 0.48 -7
3 0.48 0
4 0.51 +3
7 0.49 -2
8 0.42 -7
9 0.47 +5
10 0.47 0
11 0.42 -5
14 0.43 +1
15 0.45 +2
16 0.44 -1
17 0.42 -2
18 0.42 0
21 0.39 -1
22 0.43 +4
23 0.44 +1
24 0.44 0
25 0.41 -3
28 0.42 +1
29 0.41 -1
30 0.45 +4
  Table 1: Daily 15-year gilt yields and changes
* bp - basis points

News related stories:
Providers raise annuity rates as gilt yields bounce 22 basis points
Pension annuities fall as Federal Reserve hold rates until 2022
Equity markets rally on hopes for vaccine as yields lack direction
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