Annuity Calculator UK

Compare Best UK Annuity Providers In 2024

It’s important you look across the market to find the best annuity for your needs. Many people simply choose the annuity offered to them by their pension provider, which may not offer the most favourable rate.

Below is a list of some of the UK’s top retirement annuity companies our calculator compares on your behalf.

	Aviva Known as Norwich Union until 2000, Aviva is one of the UK’s most-recognisable financial services brands. It’s also the UK’s biggest insurer. Aviva annuities are part of its wider pensions and wealth proposition.
	Canada Life Although headquartered in Toronto, Canada Life nonetheless has a strong UK presence, active here since 1903. Canada Life annuities include both lifetime and fixed-term options. In August 2017, Canada Life further strengthened its UK footprint when it agreed to purchase Retirement Advantage, another major UK provider.
	Hodge Lifetime Retirement income and lending specialist Hodge Lifetime was founded in 1965. In 2016, Hodge Lifetime’s annuities saw the company win the ‘Most Competitive Annuity Provider’ award at the Moneyfacts Investment Life & Pension Awards for the second year running.
	Just Retirement JUST was born from a merger between Partnership Assurance and Just Retirement in 2017. Previously, JUST Annuities were sold under both the Just Retirement and Partnership brands.
	Legal & General Founded in 1836 as a Life Insurance company for lawyers, Legal & General has since expanded into one of the country’s most-recognisable financial services brands. L&G is currently one of the UK’s top annuity providers.
	Liverpool Victoria LV was founded in 1843 and is one of the UK’s biggest general insurers. It also has a sizeable life and pensions division offering Liverpool Victoria annuities and other pension solutions.
	Old Mutual London-based Old Mutual was founded in South Africa in 1845. Today it’s a global investment, savings and bancassurance provider. As well as offering its UK customers financial services, including annuities, Old Mutual also owns and operates the Intrinsic financial adviser network.
	Scottish Widows Scottish Widows became part of Lloyds Banking Group – which has been trading since 1765 – in 2009. Providing insurance in the UK since 1815, Scottish Widows itself is an old, well-established brand and offers pensions and annuities to UK customers from its Edinburgh headquarters.

Calculating How Much Annuity Your Pension Will Buy

Your annuity factor may be expressed as a percentage – e.g. if you get a £5,000 pension income from a £100,000 pension pot, it’s a rate of 5%.

Alternatively, you may see your annuity rate expressed in terms of income, so a rate of 3% means you’d get £300 for every £10,000 invested.

How much annuity your pension will buy depends entirely on your circumstances. When calculating your rate, the annuity formula is incredibly personalised to your needs. It will take into account a variety of lifestyle factors and the size of your pension pot to work out how much your retirement income will be worth.

Annuity Rate Table 2024

As pension annuity rates are entirely tailored to you and your circumstances, to provide these sample rates we’ve had to make a number of assumptions about the individual buying them.

To come to the above quotes, the assumptions we’ve made include:

• They’ve bought a single annuity
• They’re in good health with no pre-existing conditions
• They don’t smoke
• They don’t want a guarantee period so payments will continue after their death
• They live in East Sussex, in the same postcode as our Brighton-based financial advisers.

Is Buying an Annuity Right for Me?

Without looking into your circumstances and offering regulated retirement advice, it’s hard to know whether or not you should buy a pension annuity.  This is because how much pension you’ll get is dependent on a variety of factors that are very much personal to you.

However, what is true is that annuity rates have fallen in recent years. Low interest rates and low yields on UK government bonds have hit providers hard. That means the annuity formula used today to calculate rates is poor, perhaps more so than it’s ever been.

Despite this, buying an annuity might still be right for you if:

• You want a lifelong, guaranteed and inflation-proof retirement income
• You don’t want to take on investment risk, even if it means higher returns
• Your pension pot is small and might run out too fast with income drawdown
• You’re ill or you smoke – here an enhanced annuity is often possible to get a better annuity rate
• After your death, you want to provide a pension income for a spouse or partner who has little or nothing in the way of their own retirement savings
• Your pension provider offers a guaranteed annuity rate– sometimes old defined contribution pensions offer an annuity rate far better than you’d get currently on the open market.

Fortunately, if today’s low annuity rates have put you off buying one a lifetime annuity is not your only option. It’s true that annuities offer the most security, with a guaranteed retirement income for life.

However, the low rate environment and the 2015 pension freedoms have seen more people consider an alternative to annuities: pension income drawdown.

The main point to remember about buying a pension annuity is that, once you do, you can’t go back and change your mind. Lifetime annuities are permanent investments.

You have more flexibility with pension drawdown. You can even opt to take flexible lump sums and income payments in the early years of retirement and then switch to a retirement annuity later if you wish.

Flexi-access drawdown and annuities are two very different retirement options and it’s important you truly understand the pros and cons of both before proceeding with either.

Compare Annuity Quotes & Get Expert Advice

It’s worth getting advice when looking for the best pension for you. While an annuity might be right for some people, for others – such as those who want an easy way to pass down their pension or are keen for investment growth in retirement – it may not be the best option.

Why Speak to Us?

We started Drewberry because we were tired of being treated like a number. We want to give you as our client the service you deserve when discussing matters as important as planning your financial future.

Below are just a few reasons why it makes sense to let us help:

• See your financial future
  Our sophisticated financial modelling technology visually maps out your financial future. Get a living financial plan that clearly shows what you can achieve depending on the decisions you make — read more here.
• Achieve the retirement you deserve
  Can you afford that dream round-the-world trip? Can you help your children onto the property ladder? We’ll model your goals and build your financial plan to help you achieve them.
• Our expertise saves you time and provides peace of mind
  We take care of it all, from organising your pensions, investing your assets, managing risk and making the most of your tax allowances.
• We’ve got bargaining power on our side
  This allows us to negotiate better rates for you than dealing with providers yourself.
• You’ll speak to a dedicated expert from start to finish
  You’ll speak to a named expert with a direct phone line and email. No more call centres and machines asking you to press this and that — you’ll speak to someone who knows you.
• Benefit from our 5-star service
  We pride ourselves on providing 5-star service, as seen in our 3900 and growing independent client reviews rating us at 4.92 / 5.
• Gain the protection of regulated advice
  Our regulated advice service means you are protected. We’re responsible for the decisions we help you make. Doing it yourself or going direct to a provider doesn’t offer this protection, so you won’t benefit from these securities.

If you are getting a little confused and would like some guidance we have a team of experts on hand to help you make the right decision.

Please don’t hesitate to pop us a call on 02084327334 or email help@drewberry.co.uk.