Annuity Rate Predictions for 2013

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New EU gender equality ruling for insurance products and annuity rates has seen the average annuity rate for men fall dramatically. explains why the future annuity market is likely to remain unpredictable for some time yet.

Sign to uncertain retirement

Uncertain retirement

While it is too early to be certain, many signs indicate that annuity rates will hold strong in 2013.

Following the EU ruling, which brought in new gender equality rules for insurance in December, many experts predicted a meteoric fall in annuity rates, as men’s rates were brought down to fall in line with women’s. The new rules mean that gender can no longer be taken into account when insurance premiums and annuities are calculated. While it was expected men’s rates would fall, early indicators show that the fall hasn’t been anywhere near as dramatic as expected.

Initial predictions were that men’s annuity rates may fall by around ten percent. However, figures from the first month following the introduction of the new law show that men’s rates have fallen by around 3.5 percent, while women’s rates have risen by around half a percent to meet them.

But what about the future of annuity rates in 2013?

While it is too early to be certain, many signs indicate that annuity rates will hold strong in 2013.

As rates stabilise after the EU ruling, there are other factors that can affect rates and are looking promising for 2013. Among these are gilt yields, which are currently on the increase. Before Christmas the yield on 15 year gilts was around 2.3 per cent but by the beginning of this month, it had risen to over 2.6 per cent. However, if you are waiting for an increase in annuity rates before you cash in, you may have to wait a while longer. This is because while gilt yield drops normally herald a fast drop in annuity rates, providers are often much slower to increase them when gilt yields rise.


The Retirement Centre Ltd is an independent company, designed to help people aged over 50 to make the right financial decisions and enjoy their retirement. To compare annuity rates and find the best deal for your annuity, visit website.

For more information, call Dominic Fraser-Smith on 0113 320 5595 or email enquiry(at)theretirementcentre(dot)com

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Dominic Fraser-Smith

Katie Harland
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