How retirees can now get £3,000 a year more from the same pension pot

The same surge in borrowing costs that is piling pressure on the Government is creating an unexpected windfall for people approaching retirement.

UK gilt yields, the return someone gets from lending money to the government, have climbed to their highest levels in years.

And while this is bad news for the economy – as it means the Treasury has to spend more money servicing debt – for some retirees, the picture is very different.

What to know as Argentina threatens Falkland Islands oil fields

Argentina's President Javier Milei speaks during the Madrid Forum, a gathering of Latin American conservative leaders, in Santiago on September 3, 2026. (Photo by Javier TORRES / AFP via Getty Images)

Argentina’s President has said he will impose sanctions on oil drilling off the Falkland Islands amid heightened tensions between the UK and Argentina.

In a national address, Javier Milei said the “winds of change” favoured Argentina’s claim to control over the British territory, as the US reviews its position on the dispute.

Milei seeks oil firm sanctions

  • The Argentine President said he would boost efforts to levy penalties against the companies, as well as their shareholders, directors ⁠and suppliers.
  • Milei pledged to increase defence resources to ‌build a naval base in the nearby Tierra ‌del Fuego province.
  • He has also promised to send Congress an urgent “national sovereignty defence” bill aimed at strengthening Argentina’s ⁠response to what he called unauthorised operations around the islands.

Urgent threat to Argentine interests

“If we do not act swiftly, in a few months they will have the material capacity to access the oil that lies underneath our sea – something that has never happened before.

Milei said Argentina had determined that the Sea Lion offshore project, operated by Navitas Petroleum and Rockhopper Exploration, could begin oil development in the coming months.

FILE - Mount Tumbledown stands tall behind Stanley on the Falkland Islands, also known as Islas Malvinas, March 16, 2026. (AP Photo/Ricardo Mazalan, File)

Long-running soveriegnty dispute

The Falkland Islands have been a self-governing British Overseas Territory subject to a long-running sovereignty dispute with Argentina since the 19th century.

Argentina invaded the islands in 1982. The conflict lasted 74 days and ended in Argentine surrender after claiming the lives of 649 Argentine military personnel, 255 British military personnel, and three Falkland Islanders.

In a 2013 referendum, Falkland Islanders voted overwhelmingly to remain a British overseas territory, with 99.8 per cent voting in favour – and just three votes against.

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‘Falkland Islanders choose to be British’

In a statement on X, Defence Secretary Wes Streeting said: “The Falklands are British because Falkland Islanders choose to be British.

“Our commitment to the Falklands is absolute and unshakeable.”

(FILES) General view of Stanley, Falkland Islands (Malvinas) on October 09, 2019. Argentine President Javier Milei said on September 3, 2026, that the "winds of change" favoured Argentina's claim to the Falkland Islands, pointing to Washington's readiness to review it neutrality on his country's dispute with Britain. Britain and Argentina fought a war over the islands in 1982. (Photo by Pablo PORCIUNCULA / AFP via Getty Images)
(FILES) Aerial view of Stanley, Falkland Islands (Malvinas) on October 07, 2019. Argentine President Javier Milei said on September 3, 2026, that the "winds of change" favoured Argentina's claim to the Falkland Islands, pointing to Washington's readiness to review it neutrality on his country's dispute with Britain. Britain and Argentina fought a war over the islands in 1982. (Photo by Pablo PORCIUNCULA / AFP via Getty Images)

Trump suggests he would not help UK in Argentina invades Falklands

Milei’s comments follow a suggestion by Donald Trump that he would not back the UK if Argentina invaded the Falkland Islands.

Trump, who has strongly criticised the UK’s stance on the US-Israeli war on Iran, told GB News: “Your country was not there to help me.”

FILE - President Donald Trump greets Argentina's President Javier Milei at the White House, Oct. 14, 2025, in Washington. (AP Photo/Alex Brandon, File)

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Inside the BBC meltdown over licence fee’s future

Following the resignations of BBC Director General Tim Davie and CEO of news Deborah Turness and US President Donald Trump's threat of a lawsuit due to the editing of a BBC Panorama film about the US insurrection on the US Capitol, are BBC staff leaving Broadcasting House, on 10th November 2025, in London, England. (Photo by Richard Baker / In Pictures via Getty Images)

Scrambling to find £500m

The BBC is scrambling to cut £500m from its budget after executives discovered a gap in finances which shocked even new director-general Matt Brittin.

It comes as the number of households paying the £180-a-year licence fee fell by half a million last year to 23 million, the latest BBC accounts show.

The previous year, accounts showed a 300,000 drop in licence fee payers.

The BBC’s chief financial officer, Bérangère Michel, said earlier this year that the drop in TV licences had “resulted in an unsustainable financial position”.

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More job cuts to come

The BBC must cut £500m from its budget by 2028 – with £160m to be delivered immediately. The corporation has already announced 550 job cuts in news, nations and TV and radio content as part of the first stage in its savings plan.

BBC staff protest with signs and banners outside Broadcasting House on Portland Place, London, prior to the BBC Trust meeting concerning job cuts. BBC journalists and production staff gathered outside Broadcasting House to lobby BBC Trust members as they arrived for a meeting to finalise plans to plug a 2 billion funding shortfall. See PA Story: MEDIA BBC. Photo credit should read: Clara Molden/PA Wire
FILE PHOTO: BBC Director-General Matt Brittin speaks to members of the media as he arrives for his first day at Broadcasting House in London, Britain, May 18, 2026. REUTERS/Chris J Ratcliffe/File Photo

Other cost-cutting options include cutting BBC Four arts and its archive channel and moving its content to BBC Two. The BBC Three youth channel could also be under threat.

‘Every part of BBC affected’

  • More shows are set to be axed, following this week’s decision to scrap , insiders said.
  • In a staff memo, seen by The i Paper, interim BBC head of news Jonathan Munro, said the 200 job closures announced in June would be followed by “further post closures (in news)” in the coming months.
  • “Every part of BBC News will be affected, including senior leaders, and we’re reviewing some on-air roles,” said Munro.

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Familiar faces set to depart

There will be familiar faces leaving, presenters, on-screen correspondents. They will be looking for a small number of expensive on-air people who they might try to persuade to leave sooner than they expected. It’s all up in the air.

A leading news figure told the i paper
News 24 gallery screens during an interview with DG Mark Thompson as the licence fee was announced (Photo by Jeff Overs/BBC News & Current Affairs via Getty Images)

Apprentice jobs also hit

For use in UK, Ireland or Benelux countries only BBC handout photo of Emma Barnett being hugged by Amol Rajan after her first show presenting BBC Radio 4 Today. The journalist and broadcaster left Woman's Hour in April to join the morning news show. Issue date: Wednesday May 15, 2024. PA Photo. See PA story MEDIA Barnett. Photo credit should read: Jeff Overs/BBC/PA Wire NOTE TO EDITORS: Not for use more than 21 days after issue. You may use this picture without charge only for the purpose of publicising or reporting on current BBC programming, personnel or other BBC output or activity within 21 days of issue. Any use after that time MUST be cleared through BBC Picture Publicity. Please credit the image to the BBC and any named photographer or independent programme maker, as described in the caption.
  • Apprentices were also told they could no longer expect jobs, as a result of the cuts.

2 min read

Four things to know as Reform reported to the police over ‘funding breach’

Reform UK has been reported to the police over allegedly breaching political donation rules.

LONDON, UNITED KINGDOM - AUGUST 10: Reform UK leader Nigel Farage speaks during a press conference on prison capacity and policies concerning foreign prisoners in London, United Kingdom, on August 10, 2026. (Photo by Rasid Necati Aslim/Anadolu via Getty Images)

The allegations

In the Channel 4 report, Reform’s Dan Jukes, discusses with a donor ways to allegedly get around electoral rules by securing a £500,000 donation via a foreign source.

CLACTON-ON-SEA, ENGLAND - JULY 03: Reform Party leader Nigel Farage poses in the boxing ring during a visit to Seconds Out gym on July 03, 2024 in Clacton-on-Sea, England. The Reform Party are currently polling just behind the Conservatives as the country heads into tomorrow's general election. (Photo by Dan Kitwood/Getty Images)
CLACTON-ON-SEA, ENGLAND - AUGUST 13: Reform UK branding is seen scattered around Clacton on August 13, 2026 in Clacton-on-Sea, England. The Clacton-on-Sea by-election was triggered by Reform UK leader Nigel Farage resigning his seat to seek voter "absolution" amid parliamentary scrutiny over an undeclared ??5 million donation from a Crypto billionaire. In protest of what they called a political stunt, the main UK parties have boycotted the race, leaving a ballot paper of 33 opponents consisting of independents and fringe candidates. The absence of mainstream competition has positioned the satirical space-warrior candidate Count Binface as Farage's primary, high-profile challenger. (Photo by Ben Montgomery/Getty Images)

The report, carried out by Verbatim Investigations, appears to show head of policy James Orr, suggesting the donor’s father could pay for polling. The report claims Reform commissioned three polls £32,500 in total and that the public was not told who commissioned or funded them.

The law

Under UK law, foreign companies are not a permissible source of funding for political parties, including payments for studies and research. Accepting donations from them could constitute a criminal offence.

Reform claimed it was the victim of a hoax and denied any wrongdoing.

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Reform’s response:

Reform UK has been the target of a hoax perpetuated by foreign-funded, climate change activists posing as would-be party donors. The party denies any wrongdoing.
Reform UK has a robust vetting process for prospective donors approved by the Electoral Commission.

A Reform Spokesperson
Reform UK Leader Nigel Farage attend a press conference in central London on August 10, 2026, days ahead of the Clacton by-election in eastern England. (Photo by CARLOS JASSO / AFP via Getty Images)

Who reported Reform?

  • The Lib Dems have written to the Met Police and Electoral Commission saying that James Orr, a senior adviser to Farage, facilitating the donation from an impermissible donor would breach the Political Parties, Elections and Referendums Act.
  • Labour also intends to report the matter to the police, it is understood, while the Greens have called for an investigation.
  • The Met said it is assessing the reports.

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‘No money reached Reform UK at all,’ says Orr

Orr, Reform’s policy head who is at the centre of the allegations, said that “no money reached Reform UK at all”.

“It was a public poll arranged by an independent person paying an independent pollster, and those polls were published immediately for the general public,” he said in a video posted to X.

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Aides step down

Both Orr and Jukes have stepped down from their roles. Farage said Reform UK has “broken no laws” and has not “taken any dodgy money” amid allegations the party breached political donation rules.

Delegates walk on a Reform UK sign on the opening day of the Reform UK 2024 annual Party Conference in Birmingham on September 20, 2024. (Photo by Oli SCARFF / AFP) (Photo by OLI SCARFF/AFP via Getty Images)

4 min read

A survivor is carried by members of a search and rescue team after they rescued two people alive who had been trapped inside a tunnel at the Trishuli-3A Hydropower Project following devastating floods and mudslides that struck the Bhotekoshi River in Rasuwa, Nepal, September 4, 2026. Nepal Army/Handout via REUTERS. THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. MANDATORY CREDIT. NO RESALES. NO ARCHIVES. TPX IMAGES OF THE DAY

Two rescued a week after Nepal floods


Two people have been rescued alive from a hydropower tunnel in Nepal, nine days after
a catastrophic flash flood killed more than 1,200 people.

Some 39 workers are still believed to be trapped inside the Trishuli 3A Hydropower Project, according to Suresh Raut, a senior official of the Nepal Electricity Authority (NEA).

Rescued workers named

Authorities have named Sanjaya Shah, a mechanical foreman with the NEA, as the first person to be rescued from tunnels.

The second person rescued is Kabir Maharjan, the BBC reported.

A man who survived is carried by members of a search and rescue team after they rescued alive two people who had been trapped inside a tunnel at the Trishuli-3A Hydropower Project following devastating floods and mudslides that struck the Bhotekoshi River in Rasuwa, Nepal, September 4, 2026. Nepal Army/Handout via REUTERS. THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. MANDATORY CREDIT. NO RESALES. NO ARCHIVES.

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Injuries to hands and feet

Anil shah, a survivor rescued from a tunnel of the Upper Trishuli 3A hydropower project nine days after the deadly flash floods and a mudslide, is carried to be air lifted to Kathmandu from an army base in Nuwakot, Nepal, September 4, 2026. REUTERS/Athit Perawongmetha
  • Both workers have injuries on their hands and legs, thought to be from crawling through the tunnel.
  • They are also suffering from lack of oxygen, authorities said.

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Huge rescue mission

Hundreds of the more than 5,000 still missing are labourers working in a vast network of tunnels at hydropower sites along the river.

Rescuers work to pull out a survivor from a tunnel linked to a hydropower station following deadly flash floods and mudslides, at a location given as Rasuwa district, Nepal, in this still image taken from a handout video released September 4, 2026. Nepal Army/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT
Army personnel disembark a helicopter carrying Kabir Maharjan, a worker who was trapped inside a tunnel of Trishuli-3A Hydropower Project, as they arrive at Chhauni Army Hospital in Kathmandu on September 4, 2026. Two hydropower workers were pulled from a tunnel buried by debris in Nepal on September 4, more than a week after catastrophic flooding swept through the area, government ministers said. (Photo by Arun SANKAR / AFP via Getty Images)

Engineers have been pumping air into the hydropower tunnels as part of the huge rescue operation. Aside from the tunnel, it is estimated that over 5,000 people remain missing in Nepal and Tibet.

The rescues inject hope into an otherwise gruelling mission through thick mud.

A tunnelling expert told the news agency that teams had already dug through debris blocking the tunnel for 50-60 metres (164-196 feet) before finding survivors.

They were hoping for a breakthrough, said Arnold Dix, president of the International Tunnelling and Underground Space Association.

“After a week of 24/7 heartache, we might, just, be back in miracle country.”

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Watch more from The i Paper

How to be more grateful for daily life in five easy steps

The world feels like a difficult place at the moment, and it can feel very hard sometimes to find things to be thankful for; when we are overwhelmed, we have less capacity to notice and reflect on the good things. Yet, ironically, proactively cultivating gratitude is one of the things that can actually help us feel less stressed.

NHS GP dR RADHA

The science

Research has shown that feeling or expressing thanks can actually alter our brain.

  • The balance of neurotransmitters change; more serotonin and dopamine (feel good chemicals) are produced.
  • This can be long lasting if we make gratitude a regular habit.
  • We also get a decrease in our cortisol (stress hormone) levels which helps lower anxiety.
  • Being grateful can strengthen the nerve pathways which triggers positive emotion.

How can we build gratitude?

Two adult brothers enjoy a warm embrace in a sunny park. They stand beside a decorative fence surrounded by lush greenery, showcasing a strong bond and happiness in the moment.

Change your words

Instead of seeing something as a problem, try to see the opportunities within it. 

Our brains are very receptive and what we read or write can alter our emotional system.

Caucasian mid adult patient writing a diary while recovering in the hospital ward - stock photo

Express it

This will not only make you feel good, but you will also get a positive response from others.

How can we build gratitude?

Notice more

Throughout your day, try to notice all the things that are going well; has someone opened a door for you, or smiled?

Happy woman spending leisure time with friends at sunny day. Multiracial females are talking with each other. They are wearing sports clothing.
Group of Happy Asian senior women friends shopping and having lunch at restaurant on summer holiday vacation. Healthy elderly woman enjoy outdoor lifestyle meeting and eating food together.

The basics

By being thankful for the small things every day, we are far more likely to be and stay healthy so that we can enjoy them.

What to do

Gratitude can lead to feelings of optimism, lower our blood pressure, and improve sleep quality. 

  • Write down what potential good aspects there are to the things you don’t feel like doing, or even what could be worse about it.
  • Spend a few minutes writing down three things that you are looking forward to that day, or the good things that have happened to you that day.
  • Say thank you to yourself for the things you have achieved, or managed to get through and changed that day.

Sales of battery
electric vehicles hit a record high last year.

Starts at £22,995 for the smaller battery

Available with either a 40kWh battery or a larger 52kWh pack, that offers almost 255 miles, the latest, retro-inspired Renault 5 is both a joy to behold and a hoot to drive.

The interior has been lavished with a level of detail that’s typically reserved for more expensive cars. 

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A champion of EV efficiency

It offers a remarkable 491 mile range on a single charge from the 85kWh battery.

It is a technological masterclass inside with the ability to option screens that span the entire width of the dashboard, including an optional display for the front passenger.

Priced from £37,400

2 min read

It’s a lot of money to part with, but this is arguably all the car you will ever need.

The £89,000 Macan is a premium SUV that somehow manages to blend Porsche’s reputation for dynamics and sporty driving with everyday practicality.

The 95kWh batteries can go from 10 to 80 per cent in as little as 21 minutes from the fastest public charging outlets.


With the business class-style six seat configuration costing a staggering £76,995, it is by far the most expensive Kia ever made, but it backs up its financial demands with a suite of genuinely useful and impressive onboard technology.

It’s fast, goes a long way between stops and charges relatively quickly but the interior is bland, the onboard technology is infuriating and the experience is devoid of emotion. 

All of its gadgetry can’t disguise the fact that performance is weak, even for a typically zippy EV, the ride is fussy at slower speeds and it’s not in the least bit enjoyable to drive on a country road.

  • While good value (prices start at £17,935) for the 200-mile max range, there are more interesting options from Hyundai, Citroen and Renault for similar money.
  • It attempts to wow with tech, much of which hinders, rather than helps. 
  • There’s no tangible benefit over mounting your phone to the dash.
  • Simply an average driving experience, adequate range and slow charging speeds. 

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The kitchen gadgets under £25

best kitchen gadgets

Victorinox paring knife

It’s comfortable to hold, with a point sharp enough for scoring pastry.

ProCook cast iron pan

For unbeatable searing and heat-retention, cast iron is the top choice. 

Tesco chopping board

Priced at just £22, I’ve yet to find another board that matches it for sheer value and quality.

The kitchen gadgets under £25

Pyrex jug

It is the perfect vessel for blending smooth sauces, melting butter, or warming stock. It won’t stain like plastic and the red measurements never fade.

Salter scales

“I’ve had my slim little set of Salter Disc Scales for over a decade, and I’m delighted to see they are still made to exactly the same reliable design today.”

Microplane grater

It uses photo-etched stainless steel teeth that stay razor-sharp for a decade, something the lookalike copycats simply can’t match. 

Braun hand-held blender

It’s an essential for everything from making velvety soup to getting the lumps out of white sauce. 

Bodum cafetiere

As well as delivering great results, cafetieres are easy to clean and there’s no ongoing filter paper costs or pod recycling to deal with.

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The kitchen gadgets under £25

Oxo peeler

What truly sets it apart is the chunky, rubberised handle that absorbs pressure and stays completely non-slip, even if your hands are wet. It is inexpensive and incredibly durable.

Falcon pie dish

Made by fusing porcelain onto heavy-gauge steel for smooth durability, it is dishwasher, freezer, hob, air-fryer and oven-safe. 

The golden rules for a happy, secure relationship

Psychiatrist and neuroscientist Dr Amir Levine, author of bestselling book , explains why we behave the way we do in love.

Happy woman walking with male partner in vineyard during sunset. Elderly couple are touring in field against sky. They are enjoying during weekend.

Golden rules for happy relationships

Start with your own behaviours

The foundation of a secure, connected life is being what I call CARRP: that means being consistent, available, responsive, reliable and predictable. All of these qualities can be enacted in small gestures every day.

Side view of affectionate happy couple sitting in the cozy cafe. - stock photo
Happy young couple spending quality time together at home

Express your needs

People need consistency and connection to feel safe. This is not, ‘You hurt my feelings by never replying to me’, it’s more ‘this is the kind of contact that helps me feel secure’.

Golden rules for happy relationships

Unhappy married couple facing away from each other in a quiet home, concept of emotional distance, loneliness in relationship and family problems - stock photo

The appendix ‘inflammation’ rule

If a relationship repeatedly inflames your nervous system, you need to disengage and deprioritise it.

Lean on community

You don’t need hundreds of friends. You need people and places that regularly remind you that you belong. 

Happy couples talking while walking embraced during spring day in a meadow.
Candid shot happiness and togetherness Asian mother supporting daughter try to standing and walking first time and positive emotion - stock photo

Stop blaming childhood

Humans are much more complicated than: ‘this happened to you, therefore you are doomed to be anxious’.

Financial problems. Worried middle-aged woman holding utility bills, managing monthly household budget, sitting on bed feeling anxious. Cost of living concept

Reach for a
secure script

When something unsettles you in a relationship, your first reaction is not always the most accurate one. 

If you’re anxious, your brain may jump very quickly to: ‘this is the beginning of the end’. If you’re avoidant, your brain may say: ‘this person wants too much from me, I need to get away’. So one very practical thing you can always do is pause and ask: ‘What would a secure person do here?’

Loneliness elsewhere

When people talk about loneliness, they often assume it means you don’t have enough people in your life. But you can be surrounded by people and still feel lonely if those relationships leave you feeling excluded, ignored or disconnected.

Frustrated lonely shy guy sitting apart of others teenagers - stock photo

What to do

  • Build a community that works for your temperament and gives you regular, reliable moments of connection.
  • You can still be kind to people while not treating them as someone who belongs in your inner circle. 
  • Explain what you need. Sometimes people simply don’t realise how you are experiencing them.
  • Check in with people: does this person actually feel that I’m reliable? Do they experience me as predictable? That’s the only way that you can start to become more secure.

This is because higher long-term bond yields can translate into higher rates on annuities – a fixed income for life that people can buy with their retirement saving pots.

Why are gilt yields rising?

The renewed conflict involving Iran and the US is part of the reason gilt yields are going up, as it has had an impact on oil prices, which is expected to mean a big rise in inflation.

Put simply, investors want a bigger return for lending when inflation, government borrowing and the economic outlook all look uncertain.

“Rising energy prices and the building risk that inflation will go higher than previously expected from food and energy is causing the market to price in more rate hikes from the Bank of England over the next couple of years. The market curve for Bank rate has gone from 3.75 per cent to 4.5 per cent. That is pushing up gilt yields at the short end,” explains Thomas Pugh, an economist at RSM UK.

Pugh also says that uncertainty around “excessive government borrowing” is also driving up longer-term gilts.

What does that have to do with your pension?

With annuities, you use a pot of money saved for your retirement, and buy an annual income with it. To provide that, insurers invest the money you give them, including in long-term assets such as government bonds.

When those bonds offer higher yields, insurers can potentially generate more from the money they receive from customers. That can allow them to offer higher annuity incomes.

15-year gilt yields are particularly relevant to annuity pricing and have reached about 5.62 per cent, their highest level in 28 years.

Data from financial services provider Legal & General shows that in 2021, a healthy 65-year-old using £100,000 of pension savings could have bought a single-life annuity paying around £4,860 per year.

Today, Legal & General says that same £100,000 could secure approximately £7,700 per year – an increase of almost 60 per cent, or roughly £2,840 more annual income.

Mike Batty, Legal & General’s director of retail retirement and product strategy, said: “Annuity rates today remain significantly higher than they were five years ago, reflecting the increase in long-term gilt yields over that period.”

Exactly what you’ll receive from your pension savings depends on multiple factors.

Andrew King, pension technical specialist at Evelyn Partners, said: “Annuity rates can, however, vary dramatically with the individual’s age, health and address, as well as the type of product chosen – with options for inflation protection, periods of guaranteed pay-outs, and joint-life death benefits.”

Batty says more people are opting from annuities than five years ago, and this partly down to rates, but also down to certainty.

He said: “Increasingly, we’re seeing people value the certainty that an annuity can provide. A guaranteed income for life can offer reassurance for those approaching retirement, or deciding to stop work entirely, particularly during periods of economic volatility.”

Legal & General research found that people are almost three times more likely to consider buying an annuity because it provides a stable income that makes it easier to plan their finances (29 per cent) than because of annuity rates alone (10 per cent).

Choosing a monthly payment from an annuity can also help people budget if they’ve been used to a monthly income and outgoings during their working life.

What are the alternatives to an annuity?

The alternative to an annuity is using drawdown, where you keep you pension pot invested and pull money from it ad-hoc.

This doesn’t give you the certainty of an annuity, but in some cases it may be more lucrative, particularly if your investments perform well.

The longer you live, the better value an annuity will prove as well.

If you use a £100,000 pension used to buy an annuity paying £8,000 per year, your money would theoretically be repaid after 12.5 years, but at the same time, the purchasing power of that £8,000 could have fallen significantly by then.

The alternative is buying an annuity with inflation protection, though this may well be smaller than you’d receive without that protection.

Original source How retirees can now get £3,000 a year more from the same pension pot

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