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How do Annuity rates work?

You've worked hard for your retirement and to make the most of your pension you'll want to find the best annuity rate available to you. Your annuity fund will provide you with a source of income for the rest of your life, so choosing the right provider is an important decision.

Annuity rates are set by each provider and can vary considerably; rates tend to fluctuate quite regularly, like the interest rates on a savings account. Once you've bought an annuity you usually can't change it and are locked into that rate; therefore it's important for you to understand how annuity rates work and what impacts the income you will receive in your retirement.

Your own personal circumstances are taken into account when working out how much income you will receive: These factors include; your age, your health and the options you choose to add to your annuity.

Pension Annuity (including Enhanced)

Many people don't realise that it's vital to tell us if they have had, or are currently suffering from, any medical conditions. This is because they could gain a better annuity rate, sometimes referred to as an Enhanced Annuity. People with certain lifestyle conditions, such as smokers, or those who are overweight, may also qualify for a better rate.

The reason why you may get a better annuity rate is that a person with ill health/certain lifestyle conditions is expected on average to take fewer annuity payments than a person of the same age that has a clean bill of health.

Your spouse or civil partner's health can also be taken into account if you want your annuity to include them.

Check out our list of conditions normally covered (PDF 70KB).

Pension Annuity Calculator

To find out how much income you may get from your pension fund and to understand the different annuity options available, use our Pension Annuity Calculator. If you have a lifestyle/medical condition you may get a higher income, so make sure you fill in these details.

To find out more or to apply for an annuity

If you would like further information on Aviva annuity rates and the income you may be able to receive, call us on 0800 068 3038.

WC01064 10/2014

Contact us

For new policy enquiries or information on our products please call

0800 068 3038

Monday to Friday
9.00am - 5.00pm

For our joint protection, telephone calls may be recorded and/or monitored.

Or, arrange for us to call you back at a convenient time.

Existing Customers

If you are an existing Annuities customer, please call

0800 068 6800

Monday to Friday
8.30am - 5.30pm
8.30am - 2.00pm

For our joint protection, telephone calls may be recorded and/or monitored


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