Standard Annuity Rates

Standard annuity rates apply if you’re of good health and non-smoking. There’s a massive difference between the best annuity rates and the worst ones, and this difference can result in thousands of pounds of lost retirement income. You could obtain rates up to 20% higher than the quote from your current pension provider.

Annuity rates up to 20% higher 

Who do you buy your annuity from to get the best annuity rates?

There’s only a small number of annuity providers consistently near or at the top of annuity league tables for standard annuity rates, and these include: Aegon Scottish Equitable, Aviva, Canada Life, Legal & General, and Prudential. Buying your annuity from one of these companies could result in a 20% increase in your annuity income. See the tables below for details. 

There are also companies you should not consider buying your annuity from because of the very low rates they offer. These include: Axa, Friends Provident, and Scottish Widows; though there are many others to avoid.

You could be eligible for higher annuity rates

Higher annuity rates due to lifestyle, address, and previous occupation

You might qualify for higher annuity rates even if you’re fit and healthy, and you don’t smoke. This could be because of certain lifestyle issues, where you live, or if you had a more manual occupation when you worked, or, perhaps, a combination of these. Postcode annuities alone can make a difference of 5% – 10% to your annuity income if you live in a less wealthy area. 

Get the best annuity rates for your particular circumstances

To get the best annuity rates, in addition to your personal details it’s important that you provide information about your lifestyle and any other issues that might effect the annuity rates offered. If applicable, details about your spouse or partner are also required. Contact us and let one of our advisers help you. They know the right questions to ask to get the best deal they can for you.

Example quotes

These illustrate the wide range of standard annuity rates available.

Male life annuity quotes. Monthly income from a £50,000 fund. Level income, no guarantee period.

Female life annuity quotes. Monthly income from a £50,000 fund. Level income, no guarantee period.

Joint life annuity quotes, with 50% spouses pension. Monthly income from a £50,000 fund. Level income, no guarantee period.

Note that Aviva and Prudential aren’t in these tables because they differentiate with postcode annuity rates

Additional information 

Individual underwriting

We are seeing more issues being considered in the calculation of annuity rates these days, which is leading us towards having bespoke annuity rates. This could be to the benefit of many people.

Annuities that increase in payment (an escalating income)

To see how this can affect your annuity quotes please see the annuity payments page.

The difference higher annuity rates can make

Remember, any increase in income that you might be entitled to is payable each month and for life. If the increase is, say, £30 per month, it could be payable for 20 years or more, and that’s a total of £7,200 extra for 20 years. An extra £50 per month equates to an additional £12,000 over 20 years.

The annuity rates used

These were taken from the FSA’s published annuity rate tables, November, 2009. They show a fair indication of available rates in March, 2010.

Alternative annuity rates

If you’re a smoker or suffer from ill health it is well worth checking out the example quotes on the enhanced annuity rates and smoker annuity rates pages. You might be eligible for significantly higher annuity rates. If you’re not sure which of the various annuity types is right for you take a look at our annuity guide.

Our freephone service

If you wish, you can do everything over the telephone. It’s quick, convenient, personal, and free. It also saves you having to put your details online.