Compare the best annuity rates (updated November 2025)
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 in late October 2025 (Which?, Hargreaves Lansdown, and MoneyHelper). Rates change weekly and may vary by provider, postcode, health and personal circumstances.
1. Current annuity rates - November 2025
The table below shows the average annual income you could expect from a £100,000 pension pot, based on a standard single life, level annuity with no guaranteed period.
| Age |
Average annual income (single life) |
Average annual income (joint life) |
| 55 |
£6,620 |
£6,280 |
| 60 |
£7,040 |
£6,660 |
| 65 |
£7,740 |
£7,200 |
| 70 |
£8,600 |
£7,900 |
Sources: Which? (29 October 2025), Hargreaves Lansdown (October 2025), MoneyHelper.
Official November data from SharingPensions is expected mid month. The figures above represent the latest available snapshot and should be within roughly 1 to 2 percent of live rates.
2. Top annuity providers - late October 2025
These providers are currently offering some of the strongest rates for a healthy 65 year old buying a standard single life annuity with a £100,000 pension pot:
| Provider |
Annual income (approx.) |
Notes |
| Canada Life |
£7,742 |
Often at or near the top of standard rate tables. |
| Scottish Widows |
£7,633 |
Competitive for both single and joint life options. |
| Legal & General |
£7,607 |
Widely available, with well known annuity products. |
| Aviva |
£7,540 |
Strong brand with a broad range of retirement options. |
| Just Group |
£7,515 |
Particularly competitive for enhanced and lifestyle annuities. |
Source: Which? best annuity rates (29 October 2025).
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.
3. 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 5.25 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 2025, gilt yields remain around 5 percent. This is one of the main reasons annuity rates are still at their strongest levels in more than 15 years.
4. 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.
Enhanced annuities: If you smoke, take regular medication or have a health condition, you may qualify for an uplift of around 6 to 15 percent compared with standard rates (Which? June 2025 data). Updated enhanced rate figures for November are not yet released, so always check live quotes to confirm any uplift you may receive.
Tip: A Which? report from 2019 found that shopping around for an annuity can increase an individual’s retirement income by up to 20 percent. A few minutes comparing quotes could add hundreds of pounds to your annual guaranteed income.
Try the annuities calculator
5. 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.
6. Frequently asked questions about buying an annuity
When can I buy an annuity?
You can usually buy an annuity from age 55. This will rise to 57 from April 2028 under new pension rules. In some cases you may access your pension earlier if you have a protected retirement age or if you are unable to work due to serious ill health.
Can I change my mind after buying an annuity?
Once your annuity has started, it normally cannot be changed, transferred or cashed in. However, most providers offer a cooling off period, usually 30 days from the date your policy starts, during which you can cancel if you decide it is not right for you.
How is annuity income taxed?
Annuity income is treated like a salary and taxed under the Pay As You Earn (PAYE) system. You can normally take up to 25 percent of your pension pot tax free before buying an annuity. The rest, which is used to buy the annuity, is fully taxable when you receive the income.
How safe is my annuity?
Annuities are provided by regulated UK insurance companies. If your provider was unable to meet its obligations, you would be protected by the Financial Services Compensation Scheme (FSCS), which currently covers 100 percent of the value of your annuity with no upper limit.
What happens to my annuity when I die?
A single life annuity stops when you die. However, you can add extra features when you buy, such as:
- a joint life annuity, which continues paying an income to your spouse or partner, or
- a guarantee period, which ensures payments continue for a set time, for example 5 or 10 years, even if you die sooner.
These options normally reduce the starting income slightly but can offer extra peace of mind.
Can my health affect my annuity rate?
Yes. If you have certain medical conditions or lifestyle factors such as smoking, high blood pressure or a high body mass index, you may qualify for an enhanced annuity. This pays a higher income because it reflects a potentially shorter life expectancy.
Will my annuity income increase with inflation?
A standard or level annuity pays a fixed amount that stays the same for life, so its real value may fall over time as prices rise. You can choose an escalating or inflation linked annuity instead. These increase each year, either by a fixed percentage or in line with inflation, but the initial income will be lower.
What affects how much income I will get?
The amount you receive depends on several key factors:
- the size of your pension pot
- your age and life expectancy
- current interest and gilt rates
- your health and lifestyle
- the options you select, such as inflation protection, joint life cover or guarantee periods.
Do I have to buy an annuity from my current pension provider?
No. You are free to buy an annuity from any provider. This is called the open market option and it can make a big difference to the income you receive. Rates vary between insurers, and you could receive hundreds of pounds more each year by comparing quotes. Because annuity purchases are usually irreversible, getting independent financial advice or using a whole of market broker such as Age Partnership is strongly recommended.
7. 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.
8. 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
- 2025 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 October 2025 data and are subject to change. Official November updates will be reflected once released in mid November.