Best Annuity Rates
Annuity rates help determine the guaranteed income a provider pays in exchange for your pension savings.
For those looking for a guaranteed income for life, knowing pension annuity rates is key to their decision. Even small rate differences can impact retirement income.
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What is an annuity rate?
An annuity rate is the percentage used to turn pension savings into an annuity income.
For example, if a £100,000 pension fund generates £7,000 of annual income before tax, the equivalent annuity rate is 7%.
Generally, higher annuity rates result in higher retirement income.
How do pension annuity rates work?
Annuity rates work by considering a range of factors to help providers calculate the annuity income they can offer you per year.
What affects annuity rates?
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Your Age
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Your health and lifestyle
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The amount of pension savings
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Current interest rates
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Government bond (gilt) yields
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The type of annuity selected
The provider then determines the level of guaranteed income it can provide for the remainder of your life. Or for a fixed term annuity, the chosen policy term.
This week's best annuity rates (21st September 2026)
The below tables show the best rates currently available on the market for a single life and joint life annuity, by age.
Single life annuity rates
Based on: a £100,000 fund and average* annuitant details.
Age | Annual Income | Monthly Income |
|---|---|---|
55 | £ | £ |
60 | £ | £ |
65 | £ | £ |
70 | £ | £ |
75 | £ | £ |
Joint life (50%) annuity rates
Based on: a £100,000 fund and average* annuitant details.
Age | Annual Income | Monthly Income |
|---|---|---|
55 | £ | £ |
60 | £ | £ |
65 | £ | £ |
70 | £ | £ |
75 | £ | £ |
Our annuity rates are generated using our online annuity quote tool and Iress to compare rates available from providers across the whole of the open market.
Rates are based on a £100,000 fund, average life-expectancy UK postcode, healthy applicant, and level lifetime income.
Joint rates assume the same average details for the spouse as first applicant at a benefit of 50%, which means it would provide payments at 50% to the surviving spouse.
The term 'best annuity rates' is used to show the most favourable rate available this week from our panel of providers. The rates shown are illustrative and subject to change based on your personal circumstances.
Rates are updated weekly.
Joint-life annuities continue paying income to a surviving spouse or partner after the first person dies. These rates often offer lower initial income than single-life annuities. This is because payments are expected to last longer.
Finding the best annuity rates
The best annuity rates are not always the highest rates advertised. The right product depends on what you need.
To find the best annuity rate for you, use Annuity Ready to:
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Compare multiple providers
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Fully disclose medical conditions
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Consider policy features carefully
Even modest differences between providers can increase lifetime retirement income significantly.
Who offers annuities in the UK?
Annuity providers available directly to customers in the UK include:
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Aviva
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Canada Life
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Legal & General
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Scottish Widows
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Standard Life
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Just Group
Different providers may be more competitive for different circumstances. These are the providers that Annuity Ready compares.
Why do annuity quotes differ between providers?
Providers use different pricing assumptions, underwriting standards and investment strategies. A company offering the best annuity rate for a healthy 65-year-old may not provide the best quote for someone with a medical condition or a larger pension fund. This is why comparing quotations is so important.
Average annuity rates
Annuity rates can change quickly. Providers often reprice their products, so rates today might be different in just a few weeks.
Excluding any exceptional circumstances (such as protected pension ages or early access to pension benefits), someone aged 55 would typically receive the lowest income level. This is because it's the youngest age you can buy an annuity (increasing to 57 from the 6th of April 2028). At 70+ you would typically receive the highest income level. This is because providers expect to make payments for fewer years as the purchaser's age increases.
Are annuity rates good at the moment?
Industry experts consider current pension annuity rates to be appealing. Rising bond yields have let providers offer much higher guaranteed income. This is a big change from the long period of very low interest rates.
How have annuity rates changed over time?
Over the past two decades, annuity rates have generally followed three phases:
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Higher rates before the 2008 financial crisis.
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A long period of lower rates as interest rates and gilt yields declined.
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A recovery from 2022 onwards as bond and gilt yields increased.
Are annuity rates going up?
Annuity rates have generally increased since 2022. Forecasting UK annuity rates is tough. They depend on financial markets.
Future annuity rates will continue to follow government bond yields and interest rate trends.
Rates could increase if:
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Gilt yields continue rising
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Interest rates remain elevated
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Bond market returns strengthen
However, rates could also fall if economic conditions change or bond yields decline. For this reason, retirees should be cautious about attempting to time the market.
Next steps to get Annuity Ready
Getting a quote with Annuity Ready helps you to:
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Access multiple providers
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Identify enhanced annuity opportunities
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Compare rates and features
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Simplify the application process
If you're unsure about whether an annuity is right for you, you can get free, impartial guidance from Pension Wise.
