Annuity Calculator

Use our free annuity calculator below to assist you with your retirement income planning.

Written by Retirement Line
Reviewed by Mark Ormston

Deciding whether an annuity is right for you likely starts with a simple question: how much income can I expect?

To help you answer that question, use our free pension annuity calculator. It’s based on annuity rate data from leading UK providers including Aviva, LV=, Scottish Widows and Legal & General and gives you an immediate estimate of your income.

Pension Annuity Calculator

I'm 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 years old and my pension pot is worth around £30,000 £50,000 £100,000 £200,000 £300,000 Calculate

Your annuity income is likely to be between:

£0.00

and

£0.00

Get your personalised quote now

This calculator estimates your annuity income based on your age and pension fund size – but please scroll down to see how you can get personalised quotes based on more detailed information.

Retirement Line’s Annuity Rate Tracker runs quotes weekly across different ages, providers and products. Our calculator uses this data to create your annuity income estimate based on this week’s lowest and highest rates available. 

For personalised quotations from a number of annuity providers using real-time annuity rates and based on your own unique circumstances, click on the 'Get your personalised quote now' button above. 

Please note: This calculator is based on a healthy person taking a conventional lifetime annuity. But most customers receive more income with an enhanced lifetime annuity on account of past or present medical conditions, or lifestyle factors such as smoking or drinking, and even their postcode area. To check your eligibility, call us on 0800 652 1316 or email us at info@retirementline.co.uk. 

What our customers say

How does an annuity work?

Buying a pension annuity is an option if you have money saved in a ‘defined contribution’ personal pension or company pension scheme. When you buy an annuity, you turn your savings into regular income, either for life or for a fixed term of your choosing.

Once it’s in place, the annuity will pay you an income that isn’t affected by interest rate changes or ups-and-downs of the stock market. You’ll have the peace of mind that your income won’t drop if interest rates or investment performance drop. Of course, this means that you wouldn’t benefit from rising interest rates or stock markets, unlike some investment-based retirement solutions.

Get your personalised annuity quotes 

The annuity calculator at the top of this page has been designed to give you the quickest and simplest possible view of your potential annuity income.

The next step would be to compare personalised annuity quotes from the UK’s leading annuity providers. That’s why we’ve created a simple and straightforward way to get a personalised indication of how much income you could get from your pension with a lifetime or fixed-term annuity. 

Our more detailed pension annuity calculator provides the UK’s latest annuity rates in real time, direct from top annuity providers including Aviva, Scottish Widows, Legal & General, Standard Life, Canada Life and Just.

In this more detailed annuities calculator, we use more information to work out how much guaranteed retirement income you could expect from your pension savings with an annuity:

• The size of your pension pot.

• Real time annuity rate offered by providers.

• Your age - normally, the older you are, the larger your personal annuity rate.

• Your approximate retirement date – which could be the same as your State Pension age or any time after age 55.

• Your postcode, because living in certain postcode areas can qualify you for more income with an enhanced lifetime annuity. 

How do changes in annuity rates affect retirement income?

Retirement Line’s online annuity calculators use the latest annuity rates from leading providers to show the income you might receive with your pension pot. Rates change daily, and over time can change considerably. So how will a change in rate affect your income?

Use the simple tool below to see the approximate  effect of a rate change on annuity income. Move the sliders to match your expected pension pot and different annuity rates. For the latest information on rates, see our annuity rates page, which is regularly updated.

What other factors affect my annuity income?

We ask for essential information in our online annuity calculators so that we can show you estimated results as quickly as possible. Although the results give you an indication of how much income you could expect from an annuity, you may be on course for more. 

For example, you may be eligible for extra income with an enhanced annuity on account of your medical history, current ailments or the lifestyle choices you have made. This is why we suggest you contact us to arrange a call with one of our Annuity Specialists. They will be able to run through a health and lifestyle questionnaire with you so they can check your eligibility.

Also, you have a number of choices when taking an annuity that will affect how much regular income you receive:

• How much of your tax-free cash lump sum allowance you take. You can usually take up to 25% of your pension savings as a one-off lump sum, free of income tax. The more you take, the less your regular annuity income will be.

• The type of annuity you choose. You’ll typically receive different income levels with different types of annuities. For example, a lifetime annuity will usually pay less regular income than a fixed-term annuity.

• Any annuity options you choose. Choosing features such as annuity death benefits for your loved ones or inflation protection will typically affect how much regular income you receive.

One of our Annuity Specialists will be only too happy to provide more information and quotations for different scenarios. This will help you make an informed decision about your annuity income choices. Call us on 0800 652 1316 to talk to one of our team now, or request a call back at a time that suits you.

Information on annuity rates

Are you just looking into annuities and don’t require a personalised quotation at the moment? Our guide to annuity rates includes a table based on current rates from the leading UK providers.

Calculating tax on your lump sum allowance

One option when you have pension savings is to take the full amount as a single lump sum. However, this could mean paying tax because only the first 25% of the lump sum is tax free. 

You can use our pension income tax calculator to work out how much income tax you could be liable for if you take all of your pension fund as a lump sum payment.

Speak to an Annuity Specialist today

At Retirement Line, we pride ourselves on providing an impartial annuity service. This includes providing you with a comparison of market leading annuity products and rates from the UK’s leading annuity providers. 

You can of course get a no-obligation comparison of income available from leading providers with our free pension annuity calculator. But if you’d prefer to speak with an Annuity Specialist directly, for annuity quotes and further information and guidance, you can call us on 0800 652 1316 or email us at info@retirementline.co.uk. 

Frequently asked questions

How can I find out the present value of my pension pot?

Your pension scheme may send you annual statements showing you the present value of your savings with them. Alternatively, you can call your pension scheme and ask for the current value of your pension savings. Many schemes also have a members’ portal where you can find the fund value.

If you have lost contact details of one or more of your pension schemes, there is a free service to help you. You can use the service online at https://www.gov.uk/find-pension-contact-details, where you can also find contact information for the Govt Pension Tracing Service.

Can I enter the future value of my pension pot in the calculator?

Yes, if you are able to estimate the future value of your pension savings you can enter that in the annuities calculator. However, please be aware that if the value of your pension savings is less than expected this will affect the income you receive. Also, remember that annuity rates are constantly changing, and online calculators can only use current rates as the basis for their income projections. 

Can an annuity be set up to pay income for a short term?

Yes, you don’t have to commit to a lifetime annuity. With a fixed-term annuity, you can take a guaranteed income for a set term, with options available to you when the term ends. For instance, you may be able to buy another annuity, or take your remaining pension savings as a cash lump sum, subject to income tax.

Does Money Saving Expert have an annuity calculator?

As far as we are aware, the Money Saving Expert site does not include an annuity calculator. But remember, Retirement Line’s annuity calculator uses real-time data from leading UK annuity providers to provide you with results in seconds.