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

7 August 2012 last updated
UK annuity rates fails to move higher despite gilt yields recovery

Despite gilt yields increasing providers have not improved UK annuity rates and have preferred to wait for more upward direction.

Yields have recovered from their recent all time low with the 15-year gilt yields increasing to 2.15%, last reached on 10 July.

Despite the increase of 11 basis points for the month UK annuity rates have remained unchanged with providers of standard, smoker and impaired annuities making no moves to make improvements.

In general an 11 basis point increase in yields would result in a 1.1% increase in annuity rates although providers may will delay this improvement. Yesterday Aviva optimised their annuity rates with some decreasing by up to 5%, others increasing slightly or remaining unchanged.

Due to the volatility in the gilt yields most providers will keep annuities at current levels or decrease rates until there is greater direction.

No change with annuity rates
  More annuity topics
  August News 2012
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2019
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates

Providers optimise annuity rates

In times of uncertain market direction, many providers will change the mix of their UK annuities by reducing the rates in markets they determine to be less attractive while improving annuity rates for markets that are more desirable or profitable.

For the month of July, 90% of uk annuities decreased with standard rates lower by 1.31% and smoker annuity rates lower by 1.73%. Taking into account the current yields of 2.15%, standard annuity rates are likely to decrease by 1.0%, impaired annuities decrease by 0.2% and smoker annuity rates increase by 0.3% at some point this month. Any change in yields around this level will mean providers opting for a waiting game so pensioners retiring cannot expect an increase in annuity rates in the short term. For the latest updates see Annuity Rates 2012.

Pensioner income higher with equities

There has been a positive improvement in equity markets and pensioners that remain invested in equities can expect to see an improvement in their fund values. Since 25 July the FTSE-100 index has increased by £343 or 6.2% to £5,841. This will improve pensioner income in retirement when purchasing an annuity by this amount.

For a male aged 65 this means a fund of £100,000 could have purchased an annuity income of £5,802 pa on 25 July and now assuming the UK annuity rate remains the same, the larger fund of £106,238 has improved the pension income by £362 pa to £6,163 pa. The life expectancy of a 65 year old male is 17.83 years according to the Office of National Statistics (ONS) and this would result in an extra income of £6,454 over the pensioners lifetime.

News related stories:
Annuity rates decrease even as gilt yields remain unchanged
Pension annuities will benefit from increasing gilt yields
Annuity rates could fall again as 15-year gilt yields at all time low
UK annuity rates fall to lowest level as gilt yields struggle to improve
Annuities pressured as 15-year gilt yields at all time low
Impaired annuity rates fall 1% after week of declining gilts
Current annuity rates threatened as gilt yields decrease
Annuity Rates
  Age Single Joint  
  55 £4,273 £4,019  
  60 £4,695 £4,418  
  65 £5,361 £4,913  
  70 £6,172 £5,708  
£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:

UK enhanced annuities rise
UK enhanced annuities rise

Stronger economic data from China and the eurozone send annuities higher

Enhanced annuity rates down 3%
Enhanced annuity rates down Enhanced annuities reduce by -3.31% as gilt yields fall by 28 basis points
Annuity fall with Brexit uncertainty
nnuities fall after Brexit uncertainty Brexit uncertainty sends investors to safety of gilts lowering yields and annuities
UK annuities could rise with higher yields
UK annuities fall Yields rise by 18 basis points after improved prospect of US and China trade deal
Gilt yields rise and Trump delays tariff
Gilt yields rise as Trump delays tariffs

Donald Trump delays $200 billion of tariffs on Chinese goods pushing up yields

  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©2001-19 All Rights Reserved