• The Standard Life Annuity Rate Tracker shows that average rates in September rose when compared to June
  • The average annuity rate for a 65-year-old is 7.25%, compared with 7.11% in June this year
  • This means an extra £2,600 - £2,900 could be added to the total expected lifetime income for a 65-year-old man and woman when compared to Q2 20231

Average annuity rates continued to rise in Q3, according to the Standard Life Annuity Rate Tracker. Rates for a healthy 65-year-old reached 7.25% in September 2023, compared to 7.11% in June 1.

This modest increase means that a 65-year-old looking to annuitise in recent weeks could expect to receive an annual income of £7,248 based on a £100,000 pension pot. Over the course of someone’s lifetime, this could result in a £2,500 increase in the total lifetime income a 65-year-old might expect to receive, when compared with rates in June 2023, depending on when someone purchased an annuity.

Current Rates and Annual Income (2023)
Age Average Annuity Rate (September) Average annuity rate (June) % Change in Rates over last 3 months Annual income Annual income difference
60 6.53% 6.39% 2.16% £6,525 £137.95
65 7.25% 7.11% 1.87% £7,248 £132.85
70 8.18% 7.93% 3.07% £8,178 £243.91

About the Annuity Rate Tracker

The Tracker, developed by Standard Life, part of Phoenix Group, monitors current average annuity rates across the market for those annuitising at ages 60, 65, and 70. It also shows the total lifetime income from an annuity and the extent to which annuity rates improve with age.

Total lifetime income

The Tracker found that the total expected lifetime income for the average female who bought an annuity at 65 had increased from £158,660 in June 2023 to £161,623 in September 2023 – a difference of over £2,900. The equivalent figure for a male was £142,296 to £144,953 – a difference of over £2,500. Total expected income is based on life expectancies from ONS.

Total expected income comparison for September and June – female*
Age Total expected income (September) Total expected income (June) Total expected income difference
60 £176,180 £172,455 £3,725
65 £161,623 £158,660 £2,9631
70 £145,576 £141,234 £4,342
Total expected income comparison for September and June – male
Age Total expected income (September) Total expected income (June) Total expected income difference
60 £159,215 £155,849 £3,366
65 £144,953 £142,296 £2,6571
70 £129,219 £125,365 £3,854

*Total expected income figure based on life expectancy statistics from the Office of National Statistics, are based on age annuity is first purchased. Total expected income includes annuity income only.

Pete Cowell, Head of Annuities at Standard Life, part of Phoenix Group said: “An annuity is there to help pension savers secure income certainty in retirement, something we know is important to 9 in 10 adults2 and the results of our latest annuity rate tracker show that rates rose slightly in September. While early indications for the final quarter of the year suggest that rates have fallen back a little, what’s important to note is that they continue to remain well above the historic low levels seen previously. This latest Tracker shows that, even with slight differences throughout 2023, it continues to be a good time to consider the comfort offered by a guaranteed income in retirement.

Improving rates with age

While purchasing an annuity earlier in retirement will result in higher income overall, annuity rates also increase with age. This means that those who decide to purchase one later in their retirement are likely to benefit from higher rates.

Based on rates at the end of October 2023, the Tracker shows a 25% difference in annuity rates based on someone who chooses to annuitise at 60 versus 70. An individual purchasing an annuity at the age of 60 could expect to receive an annual income of £6,525, £7,248 at 65 and £8,178 at 70.

Average historic annuity rates for a healthy 60, 65, 70-year-old

Graph illustration of average historic annuity rates for a healthy 60, 65, 70-year-old

Graph shows the increase in annuity rates since the start of 2020, split by ages 60, 65, and 70, as at September 2023

Pete continued “When considering an annuity purchase, there are a number of factors that may impact the income you receive, such as health conditions or whether you want additional benefits such as value/capital protection so you can leave a lump sum on death to your loved ones. It is also worth thinking about the benefits of a ‘mix and match’ style approach, with an annuity being used to cover part of your outgoings, and keeping some income in drawdown to cover everything else. Through this approach, pension savers could be able to benefit from the best of both worlds – achieving security of income and flexibility with your retirement savings.”

See these details and more in September's Standard Life Annuity Rate Tracker.


Media enquiries

For further information, photos, video content or interviews, contact:

Jennifer Smallwood/Samantha Griffith
Senior PR Manager/PR consultant
Standard Life, part of Phoenix Group
07858 367818 / 07752 465345


Notes to editors:
1Annuity rates data provided by AMS Retirement. Accurate as of September 2023.
2 Retirement Voice | Standard Life

About Standard Life

  • Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years
  • Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme.
  • Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together
  • Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options.
  • We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about.

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