Record high yields of 5.49pc as Trump threatens strikes and annuity rates rise

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

Annuity Rates UK - April 2026 review

The 15-year gilt yields increase to a record high of 5.49% as US President Donald Trump threatens new strikes on Iran to force them to make a deal.

Annuity rates have reach an 18 year high with our benchmark example income rising 2.9% or £222 pa so far this year to £7,880 pa in April 2026. This is near the record high of £7,895 pa reached a year ago after Trump introduced his tariffs.

The US-Iran ceasefire started on 8 April 2026 and the blockade of shipping in the Strait of Hormuz continues with Trump reviewing the peace proposal from Iran. Trump has said he is likely to reject this and that Iran has not paid a big enough price.

The Trump administration has authorised $8.6 billion of weapons to the Middle East allies including Israel, Quatar, UAE and Kuwait. Trump is reviewing further military action against Iran to persuade them back to the negotiating table and this threat has increased the price of oil as high as $126 per barrel.

The uncertainty and threat of the war continuing means gilt yields are at the highest level for 20 years plus and annuity rates are close to the high reached last year follwoing Trump's tariffs. This is likely to be the case until the Strait of Hormuz is fully opened and shipping is allowed through.

As annuity rates are mainly based on 15-year gilt yields, the Bank of England is unlikely to cut base rates as the US-Iran blockade on shipping will send inflation higher in the global economy.

Find related news here:
Gilt yields soar as Iran close Strait of Hormuz creating global fuel crisis
Annuity rates risk as yields fall as investors expect lower interest rates

Providers of standard annuities increased rates by an average of +1.12% this month and we would expect rates to rise by +1.86%% in the medium term if yields remain at current levels.

For smoker and enhanced annuity providers increased their rates by an average of +0.49% and we would expect rates to rise by +3.07% in the medium 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   94%   6%   0% Increases of: max 2.0%   Decreases of: max 0.0%

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