Annuity Rates Today Calculator (UK)

The Annuity Rates Today Calculator estimates what open-market annuity rates could pay you this week, based on your pot, age and whether the income is for you alone or you and a partner. It compares level, rising and inflation-linked income side by side, shows what each feature does to starting income, and lets you check a quote you have been given against the model estimate. It is a model, not a live provider quote.

An annuity is an income you buy with some or all of your pension pot, usually from an insurance company. A lifetime annuity pays you a guaranteed income for as long as you live, however long that is. In return, you normally cannot change your mind or get the money back once you have bought it.

No. An 8% annuity rate does not mean your pension is earning an 8% investment return. It means the yearly income is equal to around 8% of the amount used to buy the annuity. With a lifetime annuity, you have normally exchanged that money for the promise of income rather than keeping an investment pot worth the original amount.

Gilt yields are one of the main drivers of annuity rates. Insurers back annuities mostly with gilts and other high-quality bonds, so when longer-term yields rise, they can generally support more income from the same pension pot. Age, life expectancy, product features and provider pricing matter too. Using the same modelling basis, £100,000 at 65 would have bought around £4,800 a year of level income in January 2021, against around £8,200 at the end of September 2026, mainly because yields rose sharply from 2022. The calculator updates every week from the Bank of England’s gilt yields.

There is no single right answer. Level income starts highest but buys less each year as prices rise. Inflation-linked income starts much lower, often around 30% less, but keeps its spending power. It usually takes until your 70s for rising income to overtake level income, and into your 80s to pay more in total. Your State Pension already rises each year, which some people see as enough protection.

If you die within the guarantee period, usually 5 or 10 years, the income carries on to the end of that period and is paid to your estate or someone you choose. At typical ages a 5-year guarantee costs 1% or less of your starting income, so it is often a cheap way to avoid the worst case of dying soon after buying.

A joint annuity keeps paying a share of the income, often half or two thirds, to your partner if you die first. It starts lower than a single-life annuity, because it is expected to pay out for longer. If your partner would struggle without your income, it is worth pricing. The calculator shows how much that protection lowers the starting income on your numbers.

Annuity providers ask about your health and lifestyle because these can affect life expectancy. Conditions such as diabetes, high blood pressure or heart problems, as well as smoking and some medications, can sometimes qualify you for an enhanced annuity with a higher income. The calculator assumes average health, so answer the provider’s health and lifestyle questions fully when you request real quotes.

Often, yes. You do not normally have to accept the annuity offered by your existing pension provider, and the best payer changes from week to week. Enter your provider’s offer into the quote check to see how it compares with the model estimate, then compare quotes through MoneyHelper before you accept. Some annuities are only available through a broker or financial adviser.

Some older pensions, often taken out before 2000, promise to convert your pot at a fixed rate that can be well above today’s market. You usually lose that promise if you move your pot to another provider. Check your policy documents or ask your provider before you shop around.

Yes. Annuity income normally counts as taxable pension income and is usually taxed through PAYE, so every figure in the calculator is before Income Tax. Most people can take 25% of their pot tax free first, up to the Lump Sum Allowance of £268,275, and buy the annuity with the rest. The 25% Tax-Free Lump Sum Calculator and the Pension Drawdown Tax Calculator help with the tax side.

Most people can currently access a private pension from 55. The normal minimum pension age rises to 57 from 6th of April 2028, although some people have a protected pension age or qualify for an ill-health exception. Rates rise with age, but waiting also means missing income in the meantime, and the calculator shows how long it takes to catch up.

No. Being older will normally increase the income available from the same pot because the provider expects to pay it for fewer years. But you give up income while you wait, and your pension value and market annuity rates can also change.

A fixed-term annuity pays a set income for a number of years, often 3 to 15, then returns a lump sum you choose at the start. You can use that lump sum later for a lifetime annuity, drawdown or cash. It keeps your options open, but you do not know what annuity rates will be when the term ends. If you die before the term ends, the maturity amount is often paid to your beneficiaries, but death benefits vary between providers, so check the policy terms. Fewer providers offer them, so treat the calculator’s fixed-term figures as a rough guide.

Yes. MoneyHelper says buying a fixed-term annuity triggers the money purchase annual allowance (MPAA), but a lifetime annuity with a guaranteed income does not. Once the MPAA is triggered, the most you can pay into pension pots you build up yourself, such as most workplace and personal pensions, and still get tax relief falls from £60,000 to £10,000 a year. Taking only your 25% tax-free lump sum does not trigger it. If you are still working and paying into a pension, check this before you buy. The MPAA Calculator shows what the lower limit could mean for you.

Eligible annuities from UK-regulated insurers are generally protected at 100% with no upper limit by the Financial Services Compensation Scheme. Check the protection that applies to the specific provider and product. That protection is one reason people value them for income they cannot afford to lose.

No. The calculator estimates current open-market annuity income using Bank of England gilt yields, mortality assumptions and a model calibrated against published best-buy rates. Actual quotes can differ between providers and can be affected by your health, lifestyle, postcode and the options you choose.

The model is checked every month against published best-buy rates for ages 55 to 75. The date and result of the latest check are in the calculator’s notes on how the estimate works. Real quotes also depend on your postcode, the size of your pot and each provider’s appetite for new business, so treat the estimate as a guide to what a good offer looks like.

This calculator estimates what the market is paying this week and compares types of annuity. The Pension Drawdown vs Annuity Calculator compares buying an annuity with keeping your pot invested, and the FAD vs UFPLS vs Annuity Comparison Tool compares the main ways of taking your pension.

Yes. After the results, Get my CSV downloads your options, what each feature does to starting income, the waiting table and year-by-year income for the option you picked. You will be asked for your name and email.