Annuity rates have surged in the UK as prolonged conflict in Iran fuels inflation anxieties, pushing 10-year gilt yields to near 5%—the highest since 2004. Legal & General reports a £100,000 annuity now yields £6,300 annually for a 65-year-old male, up from £3,800 in 2021, driven by bond market volatility. Inheritance tax reforms set for April 2027 will further incentivize annuities, as pension drawdowns face new 40% taxation on estates above £325,000, while joint-life annuities remain tax-exempt. Rathbones' Ed Wood notes this shift may revive annuity demand after years of drawdown preference.