Annuity Calculator
Want to know how much your pension income could be in retirement?
Size up your pension pot and explore your income options with our annuity calculator
How much income could you get?
If you’re considering an annuity, our annuity calculator can provide a helpful estimate of what monthly income you could get based on the information you provide.
We use today’s annuity rates to give you the most reliable estimate possible.
Want a quick overview? Input your age and savings amount (excluding state pension) below for a provisional estimate.
Looking for an annuity?
Our annuity calculator does all the hard work
- Tell us a bit about you
- Review your results
- Chat to an adviser
Handy hints for using our annuity calculator
- Step 1: Allow yourself a few minutes, and have your pension information with you.
- Step 2: You'll just need to tell us a bit about yourself, including your health and lifestyle, so we can give you the best quote for your circumstances.
- Step 3: Add your email address to have a copy of your quotes emailed to you.
Retirement income options – a comparison
Pension annuities are just one payment option that you have in retirement. There are numerous options to consider, however, if you're unsure what option is best for you, please speak to a financial adviser:
| Lifetime Annuities (Guaranteed Income) |
Pension Drawdown | Fixed term annuities | |
|---|---|---|---|
| Regular monthly income? | Yes | Optional; regularly, ad-hoc (subject to certain circumstances) or none. | Optional; regularly, ad-hoc (subject to certain circumstances) or none. |
| Guaranteed to last whole life? | Yes | No | No |
| Any tax benefits? | Yes. Up to 25% of your pension pot can usually be taken tax-free*. | Yes. Up to 25% of your pension pot can usually be taken tax-free*. You can then spread out further income withdrawals in line with you tax position over the coming years. | Yes. Up to 25% of your pension pot can usually be taken tax-free*. You can then spread out further income withdrawals in line with you tax position over the coming years. |
| Will market volatility affect income? | No | Yes. Your income isn’t guaranteed, meaning your investment has the potential to go down as well as up. | No |
| Fixed income each month? | Yes. You can choose to receive an income either monthly, quarterly, half-yearly or yearly. | Potentially. This will be dependent on fund size, income amount and age/life expectancy. | Yes. If you choose to receive an income you can receive a fixed amount either monthly, quarterly, half-yearly or yearly. |
| Death benefits | Yes. You can opt for your partner or spouse to continue to receive an income or lump sum payment after you die. | Yes. Normally no income tax applies for beneficiaries if you die under the age of 75. | Yes. You can opt for your partner or spouse to continue to receive an income or lump sum payment after you die. |
| Lifetime Annuities (Guaranteed Income) |
Pension Drawdown | Fixed term annuities | |
|---|---|---|---|
| Regular monthly income? | Yes | Optional; regularly, ad-hoc (subject to certain circumstances) or none. | Optional; regularly, ad-hoc (subject to certain circumstances) or none. |
| Guaranteed to last whole life? | Yes | No | No |
| Any tax benefits? | Yes. Up to 25% of your pension pot can usually be taken tax-free*. | Yes. Up to 25% of your pension pot can usually be taken tax-free*. You can then spread out further income withdrawals in line with you tax position over the coming years. | Yes. Up to 25% of your pension pot can usually be taken tax-free*. You can then spread out further income withdrawals in line with you tax position over the coming years. |
| Will market volatility affect income? | No | Yes. Your income isn’t guaranteed, meaning your investment has the potential to go down as well as up. | No |
| Fixed income each month? | Yes. You can choose to receive an income either monthly, quarterly, half-yearly or yearly. | Potentially. This will be dependent on fund size, income amount and age/life expectancy. | Yes. If you choose to receive an income you can receive a fixed amount either monthly, quarterly, half-yearly or yearly. |
| Death benefits | Yes. You can opt for your partner or spouse to continue to receive an income or lump sum payment after you die. | Yes. Normally no income tax applies for beneficiaries if you die under the age of 75. | Yes. You can opt for your partner or spouse to continue to receive an income or lump sum payment after you die. |
What else do you need to consider when calculating how much annuity you could get?
It’s not just what’s in your pension pot that counts…
- Income tax: Aside from your 25% tax-free lump sum, you can get taxed as you would from any other income source.
- Interest rates: When you purchase your annuity, the interest rates available at the time will affect how much you get every month.
- Your health: With certain medical conditions or lifestyle choices, you may be eligible for an enhanced annuity.
- Age: The later in life you take out an annuity, the more income you are likely to get on a monthly basis.
Financial advice
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