Annuity Calculator UK
Estimate the guaranteed income your pension pot could buy from an annuity. Compare single vs joint life, level vs escalating payments, and see how a guarantee period affects your income.
Annuity Income Projection
Enter your pension and preference details to estimate your annuity income
The amount from your pension you’re using to purchase the annuity.
Annuity rates rise with age, since income is expected to be paid for fewer years.
Joint life continues a reduced income to a surviving spouse or partner.
Escalating annuities start lower but rise each year to help protect against inflation.
Ensures payments continue to your estate for this many years even if you die early.
Enhanced annuities pay more if health or lifestyle factors reduce life expectancy.
Your Annuity Income Estimate
Guaranteed income breakdown
Enter your pension and preference details above and click Calculate Annuity Income to reveal your income projection.
Illustrative Annuity Rates by Age
Quickly reference typical single life, level, no-guarantee annuity rates by age. These are illustrative averages only; real rates vary between insurers and change frequently based on gilt yields and market conditions.
| Age | Illustrative Rate | £100,000 Pot Buys |
|---|---|---|
| 60 | ~4.8% per year | ~£4,800 per year |
| 65 | ~5.7% per year | ~£5,700 per year |
| 70 | ~6.8% per year | ~£6,800 per year |
| 75 | ~8.3% per year | ~£8,300 per year |
| 80 | ~10.5% per year | ~£10,500 per year |
Annuity FAQ
Everything you need to know about how UK pension annuities work, your options, and where to get free impartial guidance.
A pension annuity is a financial product you can buy with some or all of your pension pot in exchange for a guaranteed income for the rest of your life, or for a set period. Once purchased, an annuity typically cannot be changed or cashed in, so the income and terms are fixed at the outset.
A level annuity pays the same fixed income every year for life, which starts higher but loses purchasing power over time as prices rise. An escalating annuity starts at a lower income but increases each year, often in line with inflation or at a fixed percentage, to help protect its real value over a long retirement.
A single life annuity pays an income only for as long as the person who bought it is alive, and stops on their death. A joint life annuity continues paying an income, often at a reduced percentage, to a surviving spouse or partner after the annuitant dies, which typically means a lower starting income in exchange for that protection.
A guarantee period ensures that if you die within a set number of years after buying the annuity, such as 5 or 10 years, payments continue to your estate or beneficiary for the remainder of that period. This offers some protection against an early death shortly after purchase, usually in exchange for a slightly lower starting income.
An enhanced (or impaired life) annuity takes into account health conditions, lifestyle factors such as smoking, or a shorter-than-average life expectancy, and typically pays a higher income than a standard annuity as a result. Insurers assess this based on medical and lifestyle information provided during the application.
No. This is known as the Open Market Option, and it allows you to shop around and buy an annuity from a different insurer if they offer better rates or terms than your existing pension provider. MoneyHelper, the government-backed money and pensions service, and Pension Wise both offer free, impartial guidance to help you compare options before deciding.