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Bills don’t stop, even when you reach retirement

13 August 2019

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Even though you might have paid off some of your larger expenses, like your mortgage, bills don’t stop when you reach retirement.

For a retired couple the average weekly spend is £498 which equates to £2,158 a month. And unfortunately, this won’t get covered by the State Pension. In fact, it would fall short by £699 every month.

You could consider buying an annuity to make up the difference. It’s still one of the only ways of providing a secure lifetime income from your pension. And if you do, you’ll have peace of mind knowing you’ve got enough money to help cover any household costs, meaning any spare cash can be spent on life’s little luxuries.

You don’t have to swap all your pension to buy an annuity. How much you use is completely up to you. You can just swap part of it for a regular secure income, and you could move the rest of your pension into drawdown for flexibility.

For example, let’s say you’re 65 years old and you want an extra £100 a month of secure gross income, you could buy an inflation linked annuity with £42,000 of your pension. Remember annuity income is taxable. Tax rules can change and depend on your circumstances.

Monthly Income Amount needed to buy an inflation linked annuity
£50 £21,000
£100 £42,000
£200 £83,500
£300 £125,500

We generated these quotes using our online annuity quote tool on 13 August 2019. All quotes are for a single life annuity with no guarantee period, paid monthly in advance that will rise in line with RPI. Quotes are for a 65 year old who is single and lives in an area which has an average life expectancy.

If you want to get an idea of how much you might need in retirement, try our budget calculator.

More on annuities

Could you get a higher annuity income?

We all want the best deal out there, whether it be on our car insurance or the latest phone contract. So why should it be any different when it comes to our retirement income?

Yet a surprising 70% of people aged 55 and over don’t know they could qualify for a higher annuity rate.

All you need to do is provide your health and lifestyle details when you get a quote. Even the most common health conditions could mean you get a higher income, like high blood pressure.

You don’t need to be ill to qualify either. Disclosing minor details like how much alcohol you drink or your height or weight, could mean you get a higher income. And the extra money can be staggering.

Annual income from a £100,000 pension

Scroll across to see the full chart.

We generated these quotes using our online annuity quote tool on 13 August 2019. All quotes are for a single life annuity, paid monthly in advance, with no escalation or guarantees built in. Quotes are for a 65 year old who is single and lives in an area which has an average life expectancy.

More on enhanced annuities

Get a quote

Remember, even if you choose not to buy an annuity, there’s no obligation after you get a quote.

Plus, if you get an enhanced annuity quote by 19 August 2019, you’ll be entered into our prize draw.

It’s important to consider your annuity options carefully as once set up annuities can’t usually be changed or cancelled. Quotes are only guaranteed for a limited time and rates could go up or down in the future.

Win a Fortnum & Mason wine hamper

We’re giving away five £175 Fortnum & Mason wine hampers. But the clock is ticking. You must get a quote and enter your health and/or lifestyle details by 19 August 2019. See terms below. Wines will vary from those shown.

Find out more

Request quote now

What help is available?

If you’d like to get a quote over the phone, or if you have any questions, you can call our annuity experts on 0117 980 9940. They’re available six days a week: Monday-Thursday 8am-7pm, Friday 8am-6pm and Saturday 9:30am-12:30pm.

What you do with your pension is an important decision. We strongly recommend you understand your options and check your chosen option is right for your circumstances. Take advice or guidance if you’re unsure.

The government provides a free and impartial service to help you understand your retirement options - more on Pension Wise.

This article is not personal advice. We offer a range of information and support to help you plan your own finances or advice if requested.


What are the full terms of the offer?

  1. If you obtain an enhanced annuity quote using our annuity service (a “Quote”) between 07:00am on 5 August 2019 and 11:59pm on 19 August 2019 (the “Offer Period”) we will enter you into our prize draw (the “Draw”) to win a hamper worth £175 subject to these terms and conditions. The Draw is only open to individuals who obtain an enhanced annuity quote with us. Annuity quotes which are not enhanced quotes will not be entered into the Draw. The Draw is free to enter.
  2. To be eligible to win a prize, you must also:
    • be 55 or older;
    • be resident in the United Kingdom;
    • not be an employee of any Hargreaves Lansdown group company or a member of any such employee’s immediate family or household;
    • comply with these terms and conditions.

  3. Upon obtaining a Quote in the Offer Period, you will be automatically entered into the Draw. You will only be entered into the Draw once. You will be entered into the Draw on the date you first obtain a Quote during the Offer Period and you will not receive an entry into the Draw for each additional Quote you obtain during the Offer Period. Quotes obtained after the Offer Period has closed will not be entered into the Draw.
  4. Details of the terms and conditions of the Hargreaves Lansdown Annuity Service are available on our website.
  5. There are five hampers worth £175 to be won. Winners can decide to receive a cheque worth £175 if they would prefer an equivalent cash prize. Each entrant into the Draw shall only be entitled to win one of the five prizes. If you would like to opt out of the Draw, please notify us by calling 0117 980 9940.
  6. The winners will be chosen by random draw on 20 August 2019 ("Draw Date").
  7. The winners will be notified (using details provided at entry) either by telephone or, if we can’t reach the winners by telephone, by email, before 22 August 2019. If we haven’t heard from a winner by 3pm on 22 August 2019, we will hold on to the prize until we do. If we still haven’t heard from the winner by 23 September 2019, that winner will not be entitled to a prize and a draw will take place to select another winner. Please note, we will make your name and country available upon request. You will be given the opportunity to decline if you wish.
  8. The prizes will be posted to the winners using the address provided at entry within five working days of being notified of their win.
  9. Our decision regarding any aspect of the Draw is final and binding and no correspondence will be entered into about it.
  10. Participants are deemed to have accepted and agreed to be bound by these terms and conditions upon entry. We reserve the right to refuse entry, or refuse to award the prize to anyone in breach of these terms and conditions.
  11. We reserve the right to replace the prize with an alternative prize of equal value if circumstances beyond our control make it necessary to do so.
  12. We reserve the right to hold void, cancel, suspend, or amend the Draw where it becomes necessary to do so.
  13. We will process your name and address for the purpose of the Draw. Personal data supplied during the course of the Draw will be processed as set out in our privacy policy.
  14. The Draw will be governed by English law and entrants to the Draw submit to the jurisdiction of the English courts.
  15. The Hargreaves Lansdown Annuity Service is provided by Hargreaves Lansdown Asset Management Limited, which is a limited company registered in England & Wales with company number 01896481 whose registered office is One College Square South, Anchor Road, Bristol, BS1 5HL.
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Investment notes
No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.
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