Compare The Best Annuity Rates (2026)
After years of uncertainty, annuity rates remain close to their highest levels in nearly two decades, giving retirees the best opportunity since 2008 to secure guaranteed income for life.
This guide explains the latest rates, who is offering some of the strongest deals, and what to consider before you lock in your pension pot.
Important: All figures in this article are based on data verified (Which, Hargreaves Lansdown, and MoneyHelper). Rates change weekly and may vary by provider, postcode, health and personal circumstances.
Current annuity rates
The table below shows example annual income from a £100,000 pension pot, based on standard level annuity rates. These figures are for guidance only and may change frequently.
| Age | Single-life standard level rate |
|---|---|
| 55 | £6,671 |
| 60 | £6,836 |
| 65 | £7,748 |
| 70 | £8,357 |
Sharing Pensions’ May 2026 table gives single-life level rates of £6,669 at age 55, £6,991 at 60, £7,880 at 65 and £8,678 at 70 for a £100,000 purchase price.
Top annuity providers
For a healthy 65-year-old buying a single-life annuity with a £100,000 pot, Which?/MoneyHelper’s May 2026 figures show:
| Provider | Annual income (approx.) |
|---|---|
| Canada Life | £7,880 |
| Scottish Widows | £7,904 |
| Legal & General | £7,607 |
| Aviva | £7,706 |
| Standard Life | £7,618 |
| Just Group | £6,708 |
Source: Which? best annuity rates .
Rankings can change daily as gilt yields and provider pricing move. Always check a live quote before you commit, as rates can move up or down by around 1 percent in a week.
What affects annuity rates?
Several factors determine how much guaranteed income you receive from your pension pot:
- Gilt yields - the main driver of annuity pricing.
- Bank of England base rate - currently 3.75 percent.
- Age and health - older age or certain health conditions usually mean higher rates.
- Annuity type - single or joint life, level or escalating, guaranteed periods and value protection.
- Provider competition - how aggressively each insurer is pricing at the time you buy.
What are gilt yields?
Gilts are UK government bonds, in other words loans that investors make to the government in exchange for interest. The gilt yield is the return investors earn on those bonds.
When gilt yields rise, annuity providers can earn more from the money they invest, so they can offer higher guaranteed incomes. When yields fall, annuity rates usually fall too.
In 2026, gilt yields remained high by recent historical standards, which is one reason annuity rates continued to offer relatively strong guaranteed income levels.
How to find the best annuity rate for you
Annuity rates can vary by as much as 25 percent between providers, so it pays to compare the market rather than accept the first offer you receive.
When you are searching for the best rate:
- Obtain whole of market quotes through a trusted broker such as Age Partnership.
- Check whether you qualify for an enhanced or lifestyle annuity if you have medical conditions or certain lifestyle factors.
- Compare single life and joint life options if you have a spouse or partner who may need income after you.
- Review guarantee periods or value protection if you want to leave something behind for loved ones.
In Which?’s June 2025 example, a 65-year-old with certain lifestyle and health factors was quoted enhanced annuity incomes between 6% and 15% higher than a standard annuity. The uplift you receive will depend on your own health, lifestyle and provider quotes.
Tip: Shopping around can make a meaningful difference to your retirement income. MoneyHelper recommends comparing your existing provider’s offer with quotes from other annuity providers before making a decision.
How annuities compare with other retirement options
There is no single right answer for everyone. The table below shows how a lifetime annuity compares with other ways of taking income from your pension.
| Option | Best for | Key points |
|---|---|---|
| Lifetime annuity | Security and predictability | Provides a guaranteed income for life. Protects against the risk of outliving your savings, but once set up it usually cannot be changed. |
| Fixed term annuity | Short term certainty | Pays a guaranteed income for a set number of years, often with a maturity value at the end. Does not offer a lifelong guarantee. |
| Pension drawdown | Flexibility and control | Funds stay invested with the potential for growth and flexible withdrawals. Income is not guaranteed and can fall if markets drop or withdrawals are too high. |
| Cash lump sum | Small pots or one off needs | Simple, immediate access to money. However, withdrawals are finite and may be taxable, and there is no ongoing guaranteed income. |
| Combination approach | Balanced strategy | Mix of secure annuity income and flexible drawdown or cash. Can provide both certainty and room for growth, but needs ongoing management and sometimes advice. |
In simple terms, an annuity is the only option that guarantees income for life. Pension drawdown and cash give you more flexibility, but also more risk, especially if markets fall or you live longer than expected.
Many retirees choose to combine a secure annuity for core bills with drawdown or cash for flexibility and extras.
FAQS
Calculate how much more you could get
Before you buy, it is worth using the Age Partnership annuity calculator to see how much extra income you could secure by comparing the market.
Using a broker and shopping around is one of Martin Lewis’s top recommendations for anyone considering an annuity, as it helps ensure you make the most of your pension pot.
Try the calculator and compare annuity quotes
Note: Live quotes are usually valid for up to 14 days and depend on your individual health and lifestyle details.
Speak to the pension income experts
Over50choices works with leading pension income specialists to help you compare rates, understand your options and choose the best deal for your retirement. Whether you are ready to buy or just exploring your choices, expert advice can help you find the right balance between secure income, flexibility and peace of mind.
Pension Wise from MoneyHelper is a UK government funded service that offers free general guidance on pensions, annuities and financial planning. Remember that this is guidance, not personalised advice. Regulated advice is a paid service that you receive from a financial adviser who is authorised to make recommendations for your individual circumstances.
Summary
- 2026 remains an exceptional year for annuity buyers.
- Rates are still up to around 60 percent higher than in 2021, helped by strong gilt yields.
- Comparing providers and checking for enhanced rates could significantly boost your retirement income.
- Even if rates fluctuate, locking in a suitable annuity now can provide lasting peace of mind.
Important: Figures are based on 2026 data and are subject to change.
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