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
...so you don't have to!
- 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; income is chosen by the customer, limited by the size and duration of the investment. |
| 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, either all at once or alongside regular income for tax efficiency. | Yes. Up to 25% of your pension can usually be taken tax free*. When taken out as an investment within a SIPP the 25% tax free can often be paid as regular income if requested. |
| Is the pension impacted by market volatility? | No | Usually yes. Most investments in drawdown are subject to market volatility. | No |
| Fixed income each month? | Potentially. If you choose to receive an income you can receive a fixed amount either monthly, quarterly, half-yearly or yearly. You do also have the option to increase income annually by a set percentage or alongside inflation depending on the provider. | Potentially. Income can be selected by the customer either monthly, quarterly, half-yearly or yearly to best suit their needs. Income can also be changed at any time with lump sums also available. | Potentially. If you choose to receive an income you can receive a fixed amount either monthly, quarterly, half-yearly or yearly. You do also have the option to increase income annually by a set percentage or alongside inflation depending on the provider. |
| 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. Multiple options to best suit your needs. Normally no income tax applies for beneficiaries if you die under the age of 75. |
| Lifetime Annuities (Guaranteed Income) |
Pension Drawdown | Fixed term annuities | |
|---|---|---|---|
| Regular monthly income? | Yes | Optional; regularly, ad-hoc (subject to certain circumstances) or none. | Optional; income is chosen by the customer, limited by the size and duration of the investment. |
| 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, either all at once or alongside regular income for tax efficiency. | Yes. Up to 25% of your pension can usually be taken tax free*. When taken out as an investment within a SIPP the 25% tax free can often be paid as regular income if requested. |
| Is the pension impacted by market volatility? | No | Usually yes. Most investments in drawdown are subject to market volatility. | No |
| Fixed income each month? | Potentially. If you choose to receive an income you can receive a fixed amount either monthly, quarterly, half-yearly or yearly. You do also have the option to increase income annually by a set percentage or alongside inflation depending on the provider. | Potentially. Income can be selected by the customer either monthly, quarterly, half-yearly or yearly to best suit their needs. Income can also be changed at any time with lump sums also available. | Potentially. If you choose to receive an income you can receive a fixed amount either monthly, quarterly, half-yearly or yearly. You do also have the option to increase income annually by a set percentage or alongside inflation depending on the provider. |
| 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. Multiple options to best suit your needs. Normally no income tax applies for beneficiaries if you die under the age of 75. |
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
Need help?
Have a commitment-free chat with one of our friendly advisers today. Start your conversation by giving us a little more detail.
Mon to Fri 8.30am-6pm
For TextDirect: First dial 18001
We will record and/or monitor calls for training and audit purposes