Important information - What you do with your pension is an important decision that you might not be able to change. You should check you're making the right decision for your circumstances and that you understand all your options and their risks. The government's free and impartial Pension Wise service can help you and we can offer you financial advice if you’d like it. The information on our website isn’t personal advice.
The best annuity rates from the UK's leading annuity providers
To help you get an idea of what an annuity pays, we compile the best annuity rates available for a £100,000 pension each week and month. Annuity rates change regularly, and quotes are only guaranteed for a limited time, so they could be higher or lower in the future.
The exact income you could receive will depend on the value of your pension, your personal details and the options you choose. Remember, your annuity income is taxable and you normally can't swap your pension for an annuity until age 55 (rising to 57 in 2028).
Make sure you confirm health and lifestyle details when you get a quote as you could be entitled to an enhanced annuity.
This week's best annuity rates (6 September 2024)
Annual income from a £100,000 pension used to buy an annuity
| Annuity type | Age 55 | Age 60 | Age 65 | Age 65 (smoker*) |
Age 70 | Age 75 |
|---|---|---|---|---|---|---|
| Single life, level, no guarantee | £6,009 | £6,431 | £7,152 | £7,763 | £7,947 | £9,274 |
| Single life, level, 5 year guarantee | £5,993 | £6,408 | £7,102 | £7,695 | £7,844 | £9,043 |
| Single life, RPI, 5 year guarantee | £3,367 | £3,807 | £4,468 | £5,253 | £5,325 | £6,846 |
| Single life, 3% escalation, 5 year guarantee | £3,964 | £4,405 | £5,062 | £5,730 | £5,932 | £7,348 |
| Joint life 50%, level, no guarantee | £5,578 | £5,925 | £6,491 | £7,013 | £7,217 | £8,313 |
| Joint life 50%, 3% escalation, no guarantee | £3,612 | £4,036 | £4,573 | £5,046 | £5,423 | £6,508 |
These quotes were generated on 6 September 2024 using our online annuity quote tool, which compares the rates available from the UK's leading annuity providers. All quotes are based on an average postcode and paid monthly in advance. The joint life quotes assume the spouse is three years younger than the person buying the annuity.
*Smoker annuity based on a 65 year old who has smoked 10 cigarettes a day for the last 20 years and drinks 15 units of alcohol a week.
This month's best enhanced annuity rates
Take a look at the chart below to see how much extra income people receive when they confirm health and lifestyle information.
We generated these quotes using our online annuity quote tool on 5 Septemeber 2024. All quotes are for a single life annuity, paid monthly in advance, with no escalation or guarantees built in. Quotes are for a married man aged 65 with a wife 3 years younger, who lives in an area which has an average life expectancy. When health details have been added, we've also said they drink 7 units of alcohol a week and have a Body Mass Index of 27. Annuity rates change all the time, so they could be higher or lower in the future.
Best annuity rates in the last 3 years by age
We generated these quotes using our online annuity quote tool between 30 September 2021 and 5 September 2024. All the quotes in the graph are based on a £100,000 single life level annuity with a five year guarantee built in, and paid monthly in advance.
What impacts annuity rates?
Annuity rates change regularly, and they’re calculated based on several factors such as your age and life expectancy, the value of your pension, health and lifestyle, gilt yields and interest rates and the annuity options you choose.
High interest rates positively impact pension annuities and how much secure income you could get. This is because annuity providers typically buy government bonds to generate returns. Rising interest rates push these returns up - so a rise in interest rates should push annuity rates up as a result. There is no way of knowing if interest rates could go up or down in future and therefore the impact it could have on annuity rates.
The potential cost of delay
It might be tempting to put off buying your annuity in the hope that rates rise, but the cost of delaying could be significant. You can estimate the potential costs or benefits of delaying your annuity by using our annuity delay calculator.
Annuity FAQs
Guidance, help and advice
Guidance from Pension Wise
Pension Wise is a free, impartial government service for anyone aged 50 or over, with a UK based personal or workplace pension.
It can help you understand what type of pension you have, how you can access your savings and the potential tax implications of each option. But it isn’t financial advice.
Have a question?
Our UK-based helpdesk are here for you six days a week. Our friendly and knowledgeable team are ready to answer your questions no matter how big or small.
Call us on 0117 980 9940.
Opening hours
Monday - Friday: 8am - 5pm
Saturday: 9.30am - 12.30pm
Alternatively, view our annuity FAQs.
Retirement Advice from HL
Not sure if an annuity is right for you? Our financial advisers can give advice on your pension options and work with you to:
- Feel confident about when and how to take your pension
- Match all your investments to your personal goals and income strategy
- Help you plan for later life and Inheritance Tax
Retirement Advice from HL
Not sure if an annuity is right for you? Our financial advisers can give advice on your pension options and work with you to:
- Feel confident about when and how to take your pension
- Match all your investments to your personal goals and income strategy
- Help you plan for later life and Inheritance Tax