Calculators
Annuity calculator
The guaranteed income for life your pension could buy at today's rates, and what it costs to protect that income against inflation or for a partner.
What this means
How it works
How annuity income is worked out
An annuity rate is simply the yearly income an insurer will pay for each £100 you give them. At 65, a standard level annuity currently pays a little over £8 a year per £100, so £150,000 buys roughly £12,400 a year for life. The older you are when you buy, the higher the rate, because the insurer expects to pay for fewer years.
| Age | Level income per £100,000 |
|---|---|
| 55 | £7,122 |
| 60 | £7,535 |
| 65 | £8,260 |
| 70 | £9,037 |
| 75 | £10,184 |
Best standard rates published on 1 November 2026 for a single-life, level annuity with no guarantee period. Source: Retirement Line annuity rate tables.
The choices that change the figure
- Inflation protection. At 65, an income rising by 3% a year starts about 21% lower than a level one, and an inflation-linked income about 27% lower.
- Providing for a partner. Continuing half of the income to a partner of the same age currently costs only around 2% of the starting income.
- Your health. Enhanced annuities for people with medical conditions or who smoke can pay significantly more than the standard rates used here.
- Where you buy. Rates differ between insurers, sometimes by a wide margin for the same person on the same day.
Where an annuity fits
For years low rates made annuities unpopular. With rates at their current level, many advisers now use them for part of a pot: enough guaranteed income, together with the State Pension, to cover the bills that have to be paid, leaving the remainder invested in drawdown for flexibility and for passing on. Working out that split, and getting the best rate for your circumstances, is exactly the kind of decision to take with advice, because it cannot be reversed.
Questions
Annuity questions
What is an annuity?
An annuity is a contract with an insurer: you hand over some or all of your pension pot and they pay you an income for the rest of your life, however long that is. The income is guaranteed, and once bought the annuity normally cannot be changed or cashed in.
Are annuity rates good at the moment?
They are far higher than they were through the 2010s, because rates follow the yields on government bonds. On 1 November 2026 the best standard rate for a healthy 65-year-old buying a level single-life annuity was about £8,260 a year for each £100,000. Rates move frequently.
What is an enhanced annuity?
Insurers pay more if your health or lifestyle suggests a shorter life expectancy. Smoking, high blood pressure, diabetes, a high body mass index and many other common conditions can qualify. A large share of buyers are eligible and many never ask.
Level or rising income?
A level annuity pays the most at the start but buys less every year as prices rise. An annuity linked to inflation or rising by a fixed 3% starts roughly a fifth to a quarter lower and takes many years to catch up, but protects your standard of living if you live a long time.
What happens when I die?
With a single-life annuity and no guarantee, payments stop. A joint-life annuity carries on paying a set share, often 50%, to your partner. A guarantee period keeps payments going for a fixed number of years whatever happens, and value protection can return unused capital. Each option reduces the starting income a little.
Do I have to buy from my own pension provider?
No. You have the right to shop around, known as the open market option, and the difference between the best and worst rates can be worth thousands of pounds over a retirement. Because the purchase is permanent, it is worth comparing the whole market, including enhanced rates, before you commit.
An annuity is a one-way door. Compare first.
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