In more detail
| £50,000 at 65 | about £4,100 a year |
|---|---|
| £100,000 at 65 | about £8,237 a year |
| £200,000 at 65 | about £16,500 a year |
| £100,000 at 70 | about £9,094 a year |
| £100,000 at 65, carrying on for a partner at half rate | about £7,862 a year |
| £100,000 at 65, for a couple, rising 3% a year | about £5,745 a year to start |
Best single-life rates for healthy people, correct at 19 October 2026, from the MoneyHelper comparison as reported by Which?. Income goes up roughly in line with the size of the pot.
- Annuity or drawdown? An annuity is a guaranteed income for life. With drawdown your money stays invested and you choose what to take: £100,000 would pay about £5,400 a year if you want it to last from 65 to 90, but it could run out if you live longer, or if investments fall.
- You can mix the two: buy an annuity with part of your pot to cover your bills, and keep the rest in drawdown.
- Your health matters: if you smoke or have a health condition, you could get a higher “enhanced” annuity. Tell the provider.
- Take 25% tax-free first? Most people can take a quarter of the pot tax-free. On £100,000 that leaves £75,000 to buy about £6,200 a year.
- Income is taxed like a wage, and you can’t usually change your mind once you’ve bought it.
- From April 2027 unused pension money counts for inheritance tax. Annuity income stops when you die, so there’s nothing left to tax, unless you choose a guarantee period or a partner’s pension.
Before you buy, compare quotes from many providers using the free MoneyHelper annuity comparison, or speak to a financial adviser.
Related questions
- Will my pension be taxed when I die?
- How much can I put in a cash ISA?
- How much tax do I pay on savings interest?
- Do landlords need Making Tax Digital?
See everything that’s changing in April 2027.
Sources
Last checked against GOV.UK: 9 October 2026