An overview of annuity rates
Annuities give you a guaranteed income for the rest of your life. But exactly how much could you get?

We reveal how your annuity rate is calculated, how much you could expect to get every year for the rest of your life – and how you could potentially increase the amount of money you get.
How big is your pension pot?
The size of your pension pot determines your annuity income more than anything else. Simply put, the more pension money you use to buy your annuity, the higher your annuity income will be.
If you want to find out how much your pension is worth, check your latest statement. Although, remember that this may change before you decide to take your benefits. If you have more than one pension, check the latest statement for each one.
Bear in mind, you can normally take out up to 25% of your pension in tax-free cash before using the rest to buy an annuity, but once set up your annuity can't be changed.. But the more you take out, the less you can put towards your annuity – and the lower your income will be. Tax rules are subject to change and depend on individual circumstances.
Your age medical conditions and more
It's not just the size of your pension that matters. Your age and health both affect how much annuity income you'll get in different ways.
For example:
- The younger you are, the less income you'll get at the start of your annuity. But taking it sooner means you may be paid more over the long-term.
- Certain medical conditions and lifestyle choices, like heavy smoking, can get you more income. But you might receive less over the long-term if you pass away due to health problems.
Are you single or in a relationship?
If your annuity is just for yourself, then you'll often get a higher rate than if you share it with a healthy partner.
But if you buy a 'joint annuity', your annuity rate will typically go down. This is because your provider pays some of your income to your partner for as long as they live after you die.
How to get an enhanced annuity rate
An enhanced annuity is an industry term that essentially means "more money". But how do you get your hands on it?
It's all to do with the state of your health. For example, here's a few things that could get you an enhanced annuity:
- If you are or have been a heavy smoker
- Being overweight
- A health condition like high blood pressure or diabetes
You could also get an enhanced rate if you add a partner who has a medical condition or poor health to your annuity too.
As you can see, when shopping around for an annuity, it's worth telling the provider any medical or health conditions you and a partner may have. It could make all the difference in getting you an enhanced annuity rate.
25% of customers under-disclose their medical history Footnote [1]. The best way to boost your income is to provide as much information as possible about your conditions, including any medical letters or hospital reports if available.
Government, taxes and interest rates
Annuity rates are closely linked to interest rates. For example, when interest rates are low, so are annuity rates.
When you buy an annuity, the income you get is taxed under PAYE rules. This means that it will change when those rules change, as well as for other reasons outside your annuity provider's control, like new government policies or regulations.
What annuity rate can you get?
In short, it depends. Annuity rates rely on a few things, like your age and health, the type of annuity you choose and market conditions. But to give you a rough idea, the graph below shows our average annuity rates.

Table based on the average annuity rates for 65 year olds with a range of pension pot sizes. Footnote [1] The actual annuity rate we would offer is tailored to your circumstances and choices.
Inflation and annuity rates
At Aviva, we offer two annuity features designed to help you manage the impact of inflation. Understanding how each feature responds to inflation may influence which annuity option is right for you.
- Level annuity pays you the same amount every month with no change. So, if inflation rises, although you're being paid the same amount, your money could be worth less.
- Escalating annuity increases your payouts by a fixed percentage or in line with inflation based on either the retail price index (RPI).
Influence your annuity rate with these three options
When you take an annuity with a provider like Aviva, you have three options to choose from. All these options affect your annuity rate.
With Aviva, your annuity income can either:
- Stay the same for the rest of your life
- Increase at a fixed rate every year
- Increase in line with the RPI
If you choose the 'stay the same' option, your income will remain fixed throughout your retirement. It won't increase over time, which means your payments will not adjust for inflation. It’s an important decision because once an annuity is set up, it can’t be cashed in or changed in any way, even if your circumstances change.
Find out how much you could get with our annuity calculator
Get a quick quote with our annuity calculator for an idea of how much we could pay you for the rest of your life. You can use the calculator even if you don't have a pension with us, but you do have to be a UK resident aged 55 to 74.
But remember, our annuity calculator quote is only an estimate and not a guaranteed quote. Also, make sure you shop around, as other providers could pay more.
You can find out more information here about how our annuity works.
Pension annuity calculator
Learn more about the sort of income you might receive from an annuity with our calculator. It's free, quick and easy-to-use.