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Pension annuity rates

Annuity rates depend on a number of factors, including market conditions, life expectancy and the choices you make to shape your annuity. The only way to guarantee that you get the maximum income from your pension pot is to get quotes from the whole annuity market.


How are annuity rates calculated?


When you hand over your pension pot to a provider, they usually invest that money in long-term government bonds, typically a 15 year gilt. The return they can offer you depends on the interest rate, or yield, on that bond.

Life expectancy is also an important factor. As people live longer, providers expect to pay more out, therefore lowering the income that retirees can get.


The importance of shopping around


Six out of 10 people stick with their original pension provider according to a review by the Financial Conduct Authority. But shockingly our figures indicate that by shopping around 80% of those could have had a better deal if they had got their annuity from a different provider!

It’s important that you compare rates to secure the highest lifetime income possible – in some cases as much as 43% more income.^ You only get one chance to do this; once you have bought an annuity and have started to receive your income, you can’t change your mind.

At Key we can help you to find a better annuity rate by searching the market for you, so you don't have to.


^Based on Key's average customer 2016 - Male, single, aged 64, fund value £59,660.91. It depends on your individual circumstances if you are able to achieve these increases above.

Best Quote Guarantee


We will not be beaten on rate or we will pay you £100!*

Remember - It's worth shopping around as your income will vary between annuity providers.

Challenge us today and we'll search the whole of the market for you!



*Terms and conditions apply. To find out more speak to a retirement income specialist on 0808 156 2693.

How much income could you get with an annuity?

Compare rates from the whole annuity market to find the best one for you! We can do the hard work for you. Start your journey by calculating your income today.

Key promise

Customer satisfaction is at the heart of everything we do; we pride ourselves on being independent, transparent, supportive and straightforward. We're passionate about helping you to make the most of your finances when you’re in or approaching retirement.

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