Welcome to Which Annuity
Getting income from your pension
From age 55 (rising to 57 from April 2028), you have the option to turn your ‘defined contribution’ or ‘money purchase’ pension pot into a regular income by buying an annuity.
UK Pension Landscape
In 2024 the number of people receiving the State Pension increased by 1.6% to 13 million. [UK Gov]
Annuity rates have risen
%
Increase in
Years
As of March 2025, annuity rates are at a 16 year high.
More about pension annuity
Conventional lifetime annuity
A conventional lifetime annuity gives you a reliable, regular income in return for a lump sum from your pension. It can pay out for life or a set number of years, helping you enjoy a more secure and steady retirement.
Fixed-term annuity
A fixed-term annuity gives you a guaranteed income for a set number of years, rather than for life. When the term ends, you’ll get a lump sum back, giving you more flexibility to shape your retirement plans.
Medically enhanced annuity
A medically enhanced annuity can give you a higher income if you have certain health conditions or lifestyle factors. It offers guaranteed payments that reflect your personal situation, helping you make the most of your pension.
Joint annuity
A joint life annuity keeps paying out even after you’re gone, continuing to support your partner or loved ones. It’s a reassuring way to help protect their financial future and give you peace of mind.
Plan, Forecast, & Manage
Our annuity calculator makes it easy to see how much income you could get in retirement.
Just enter your age and pension pot size, and you’ll get a range of estimates based on up-to-date rates from top providers.
It’s quick, simple, and you don’t need to share any personal details.
Use our free and anonymous annuity calculator
Why get a pension annuity?
Tax free cash lump sum
You can take a cash lump sum from your pension before using the rest to buy an annuity.
Under current tax rules, you can usually take up to 25% of your pension pot as tax-free cash.
Payment frequency
You can usually choose to get your annuity payments monthly, quarterly, half-yearly, or once a year.
You can also decide whether you’d like to be paid in advance (at the start of each payment period) or in arrears (at the end).
Death benefits
You can make sure someone you care about continues to receive money from your annuity after you’re gone.
One way to do this is by setting up a joint life annuity, but there are other options too.
Inflation protection
Over time, inflation can reduce the buying power of your annuity income.
To help protect against this, you can choose to have your payments increase each year—either in line with the Retail Prices Index or by a fixed amount.
Fixed term
These provide a regular income for a set period of time, rather than for life.
They can be a good fit if you want a guaranteed income for now, with the flexibility to explore other retirement income options later on.
Some of our handy guides
Annuity Versus Drawdown
Guaranteed Annuity Rates (GAR)
How Much Pension Will I Get If I Have Never Worked?
Pension Annuity
Annuity Guides
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Please remember that the content on this site is purely informational and should not be considered personal financial advice. We are not affiliated with any of the websites mentioned or linked to on our website.