Annuity Calculator 2026/27

See the guaranteed income your pension pot could buy for life. Compare level, inflation-linked and joint-life annuities.

Guaranteed Annual Income
£0
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Monthly Income
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After Basic-Rate Tax (20%)
£0
Tax-Free Lump Sum Taken
£0
Total Paid by Age 85
£0
Break-Even Age vs Keeping Pot
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4% Drawdown Would Pay
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Cumulative Income by Age · Level vs RPI-Linked
Typical Single-Life Annuity Rates by Age (level, healthy buyer)
Age at Purchase Typical Rate Income per £100,000
606.2%£6,200/year
657.0%£7,000/year
707.9%£7,900/year
759.0%£9,000/year
8010.5%£10,500/year

Indicative market rates only · your quote will depend on gilt yields, health, postcode and options chosen. RPI-linked starts around 35% lower, joint-life 50% around 10% lower.

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Annuity FAQs

How are annuity rates set?
Annuity rates are driven mainly by long-term gilt yields, your age at purchase, and the features you choose. Higher gilt yields mean insurers can pay more income for the same pot, which is why rates improved sharply after 2022. Older buyers get higher rates because the insurer expects to pay for fewer years. Adding inflation-linking, a joint-life benefit for a partner, or a guarantee period all reduce the starting income because they increase what the insurer expects to pay out overall.
What are enhanced or impaired annuities?
If you smoke, take regular medication, or have a health condition such as diabetes, high blood pressure or a history of serious illness, you may qualify for an enhanced annuity paying 10-30% or more above standard rates. Insurers price on life expectancy, so a shorter expected lifespan means a higher income. Always disclose health and lifestyle details when getting quotes · around half of annuity buyers could qualify for some uplift but many never ask.
Are annuities protected if the insurer fails?
Yes. Annuities are covered by the Financial Services Compensation Scheme (FSCS) at 100% of the income with no upper cap, provided the insurer is UK-authorised. This makes a lifetime annuity one of the most secure retirement incomes available · even if the insurance company collapsed, the FSCS would ensure your payments continue in full for life.
Annuity or drawdown - which is better?
An annuity gives a guaranteed income for life with zero investment or longevity risk, but it is inflexible and typically leaves nothing to inherit. Drawdown keeps your pot invested and flexible, and anything left can be passed on, but the money can run out if markets fall or you live longer than expected. Many retirees mix the two · using an annuity to cover essential bills and drawdown for the rest. Rates also rise with age, so buying an annuity later in retirement often pays more. Try our Annuity vs Drawdown Calculator to compare both routes side by side.

For informational purposes only · Not financial advice · Annuity rates are indicative and vary by provider, health and gilt yields · Always compare quotes across the open market before buying · An annuity purchase is normally irreversible