Annuity Rates
Annuity rates can vary by as much as 20% if you’re in good health. If you have certain medical or lifestyle conditions you could qualify for enhanced rates, which can be up to 40% higher.
Best annuity rates
- Our aim is to help you achieve the best annuity rates. We do this by comparing rates from all companies.
- If you’re in good health, examples of the best annuity rates currently available are shown in the tables below.
- If you have any medical or lifestyle conditions you could receive a higher income with an enhanced annuity.
- Ask us for a quote today to discover just how much retirement income you might be entitled to.
Male lives – Highest annual incomes, 1st May, 2012
| Retirement age | £30,000 fund | £50,000 fund | £75,000 fund | £100,000 fund |
| Age 60 | £1,668 | £2,808 | £4,236 | £5,640 |
| Age 61 | £1,704 | £2,868 | £4,320 | £5,772 |
| Age 62 | £1,740 | £2,940 | £4,428 | £5,916 |
| Age 63 | £1,788 | £3,012 | £4,536 | £6,072 |
| Age 64 | £1,836 | £3,084 | £4,644 | £6,228 |
| Age 65 | £1,884 | £3,168 | £4,776 | £6,408 |
Female lives – Highest annual incomes, 1st May, 2012
| Retirement age | £30,000 fund | £50,000 fund | £75,000 fund | £100,000 fund |
| Age 60 | £1,608 | £2,700 | £4,080 | £5,448 |
| Age 61 | £1,644 | £2,760 | £4,164 | £5,568 |
| Age 62 | £1,680 | £2,820 | £4,260 | £5,688 |
| Age 63 | £1,716 | £2,892 | £4,356 | £5,820 |
| Age 64 | £1,764 | £2,964 | £4,452 | £5,952 |
| Age 65 | £1,800 | £3,036 | £4,572 | £6,108 |
Joint life, with 50% spouses pension – Highest annual incomes, 1st May, 2012
| Retirement ages | £30,000 fund | £50,000 fund | £75,000 fund | £100,000 fund |
| Male 60, Female 58 | £1,524 | £2,580 | £3,888 | £5,208 |
| Male 61, Female 59 | £1,560 | £2,628 | £3,960 | £5,304 |
| Male 62, Female 60 | £1,596 | £2,688 | £4,044 | £5,412 |
| Male 63, Female 61 | £1,632 | £2,748 | £4,128 | £5,532 |
| Male 64, Female 62 | £1,668 | £2,808 | £4,224 | £5,652 |
| Male 65, Female 63 | £1,704 | £2,880 | £4,332 | £5,784 |
Pension funds shown are after tax-free cash. The incomes shown are level with no guarantee period. The rates are taken from the FSA’s annuity tables, 1st May, 2012. Figures are for a G15 postcode.
To obtain your free, no obligation annuity quotes you can enquire online, or call us free on 0800 0124 374. One quick free phone call from you can make all the difference. We’re here Monday to Friday, 9 am to 6 pm.
Why do annuity rates vary?
Annuity rates are based on various factors – age, gender, health, lifestyle, size of pension fund – and they do vary greatly. Some insurance companies simply don’t offer competitive rates.
If you’re in good health rates can vary by up to 20% between different companies. However, rates can vary by as much as 40% if you have any medical or lifestyle conditions.
Whether you want a single life or a joint life annuity, and whichever options you require (perhaps a guarantee period or an increasing income) there will be a tremendous difference between the best and worst quotes. We can help you get the best deal. Can you afford not to?
How do you go about ensuring you get the best deal? One, you use your open market option and shop around, and two, you use a specialist service such as this to help you find a better deal.
The older you are, and the bigger your pension fund, the greater the difference in annuity rates.
Life expectancy
Annuity rates are all about life expectancy, and, if you have any medical or lifestyle issues, the insurance company will assume you have a shorter than average life expectancy, so they’ll pay you more each month, as they expect to be paying you for a shorter period of time.
Conversely, your income will be lower if you’re in good health because the insurance company will assume you have a longer life expectancy, and therefore they’ll pay you less each month, because they’ll expect to be paying you for a longer period of time.
Retirement is probably the one time in your life when it pays to be ill.
Annuity income
A guaranteed period (5 or 10 years typically) is an important and inexpensive option. If you should die before the guaranteed period ends, your annuity income for the rest of the period will be paid to your spouse/partner or your estate. Your income will be paid for the rest of your life if you do not die within the guaranteed period.
Your annuity income can also increase by the RPI if you want full protection against future inflation. With increasing income options your starting income is lower, but in the years to come it will increase to a level higher than payable with a level income option.
Annuity quotes
We can get you the highest rates available by comparing annuity quotes from all companies. This could result in you being thousands of pounds better off during the course of your retirement.
Annuity options
Your annuity can be tailored to meet your individual requirements. Not only can you choose how to take your income, you can also provide financial protection for your dependants with a guarantee period or a joint life arrangement. Your various options are explained fully on the annuity options page.
