Pension annuity calculator

Find out how much guaranteed income for life you could have with our free annuity calculator.

Written by Retirement Line
Reviewed by Mark Ormston

How does our annuity calculator work?

Our pension annuity calculator estimates your annuity income based on your age and pension fund size. It is based on Retirement Line’s Annuity Rate Tracker, which 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.

Calculator data last updated: 5th December 2024

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 free personalised quote here' button above. 

Important: Our annuity 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. In fact, there are around 1,500 different qualifying conditions - such as diabetes, asthma and heart disease - that could qualify you for extra income. Lifestyle factors such as smoking or drinking, and even your body mass index (BMI) could qualify you for enhanced rates.

What is an annuity calculator?

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 based on annuity rate data from leading UK providers including Aviva, LV=, Scottish Widows and Legal & General.

All it takes is a moment or two to enter some basic information. Then you’ll instantly get an estimate of how much guaranteed income for life you could secure by turning your pension pot into an annuity.

Benefits of using our annuity calculator

Fast. Just enter your age and the size of your pension pot for your lifetime income estimate.

Anonymous. We don’t ask for your name or contact details.

Up-to-date. Your income estimate is based on this week’s annuity rates from leading providers.

Backed by personal help. Retirement Line is the UK’s largest annuity broker* and provide a friendly personal service when you need more help.

Things to consider

Assumptions about your annuity. We use assumptions in our pension annuity calculator to keep things simple. For example, the estimate is for an annuity with no death benefits for your loved ones, and for level payments rather than inflation linking. When you buy an annuity, you can choose from these and other options, and this will affect how much income you receive.

An estimate of your income. The calculator provides an estimate of your annuity income. If the estimate is of interest to you, please talk to one of our Annuity Specialists for personalised guaranteed quotes from leading providers.

Annuity income is taxable. Income from an annuity and other retirement income products is taxable at your marginal rate of income tax.

Get your personalised annuity quote 

If you would like to find out more about annuities, and get tailored annuity quotes from leading providers, we can help.

Our Annuity Specialists can give you quotes, direct from top annuity providers including Aviva, Scottish Widows, Legal & General, Standard Life, Canada Life and Just.

For these quotes, we use more information to work out how much guaranteed retirement income you could expect from your pension savings with an annuity. This includes checking if you qualify for more income with an enhanced annuity. 

What our customers say

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 annuity 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.

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.

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.

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.