Overview
- Moneyfactscompare said rates on new retirement annuities could increase in the coming weeks as UK government bond yields climb.
- Providers set annuity prices off gilt yields, with 10‑year gilts near five percent in recent weeks pointing to the prospect of higher starting incomes.
- Some buyers could gain hundreds of pounds a year if rates move up, with 2022’s volatility showing about £900 annual differences between early- and late-year purchases.
- ABI data for 2025 shows renewed demand for guaranteed income, with annuity premiums up 4% to £7.4 billion and strong growth in large purchases and inflation‑rising products.
- Experts urge personalised advice because health, risk tolerance and timing drive outcomes, and some retirees may mix an annuity with drawdown rather than commit their full pot.