Annuities

Annuities have quietly had one of the best few years in their history. After a decade of poor rates that put many savers off entirely, the sharp rise in gilt yields since 2022 has pushed annuity rates back up substantially, making a guaranteed income for life a genuinely competitive option again, not just a fallback for the risk-averse. Where a 65-year-old might once have been offered under £5,000 a year for a £100,000 pot, broadly illustrative current rates sit noticeably higher, and the gap between annuities and drawdown, in terms of value, has narrowed considerably as a result.

This matters because your own personal rate, and whether an annuity beats drawdown for you, depends heavily on your age, your health, and how much you value certainty over flexibility. At the same time, one of the biggest opportunities in the whole pensions system remains massively underused: enhanced annuities, which pay a higher income to anyone with common health or lifestyle factors like smoking, high blood pressure, high cholesterol, or being overweight, yet are claimed by only a fraction of the people who could qualify. Whether you're weighing an annuity against drawdown, wondering what today's rates actually look like, deciding between single and joint life, or checking whether you or a partner might be entitled to a better deal, the guides below cover every angle in plain English, with worked examples, no jargon, and a clear steer on when an annuity, drawdown, or a mix of both is likely to serve you best.