Annuity rates hold near decade‑highs into 2026, extending retirement income boost

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Annuity rates rose in March 2026, reaching 7.62%, according to our Annuity Rate Tracker. With long‑term interest rates remaining high, annuity pricing improved by 1.46% compared with the end of 2025. A healthy 65-year-old with a £100,000 pension pot could now expect an annual income of up to £7,620 which could translate to an additional £3,000 for a male and up to £4,000 for a female, over the course of someone’s lifetime.

Annuity rates – Q1 2026

	Average annuity rate March 2026	Average annuity rate December 2025	% change in rates
60	6.85%	6.74%	1.63%
65	7.62%	7.51%	1.46%
70	8.35%	8.25%	1.21%

About the Annuity Rate Tracker

We developed the Tracker to monitor 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, as well as the total income possible from a fixed-term annuity. Better rates may be available if your clients have any health or lifestyle conditions.

Total lifetime income¹

According to the Tracker, a healthy 65-year-old male who bought an annuity in March 2026 at a rate of 7.62% could expect a total lifetime income of £153,000. For a female of the same age, the expected income was £174,000.

Meanwhile, a healthy 70-year-old who bought an annuity in March 2026 could expect a rate of 8.35%. For a man, this would provide a total lifetime income of £134,000 while a woman could expect to receive £153,000.

Total expected income: Q1 2026 – male

	Total expected income – March 2026	Total expected income – December 2025	Total expected income difference
60	£167,000	£164,000	£3,000
65	£153,000	£150,000	£3,000
70	£134,000	£131,000	£3,000

Total expected income: Q1 2026 – female*

	Total expected income – March 2026	Total expected income – December 2025	Total expected income difference
60	£188,000	£185,000	£3,000
65	£174,000	£170,000	£4,000
70	£153,000	£150,000	£3,000

^{*Total expected income figures are based on life expectancy statistics from the Office of National Statistics, based on age annuity is first purchased. Total expected income includes annuity income only and rounded to three significant figures.}

Improving rates with age

Annuity rates rise with age, meaning clients can choose a lower income for longer or a higher income over a shorter period. However, many will still receive more ‘total income’ over their lifetime by purchasing an annuity earlier rather than delaying.

As of March 2026, rates for a healthy 60-year-old were 6.85% compared to 8.35% for a healthy 70-year-old. This results in an annual income of £6,850 for a 60-year-old versus the £8,350 a healthy 70-year-old may expect to receive on a £100,000 pension pot – a difference of £1,500.

Reducing retirement uncertainty with guaranteed income

With more people retiring with defined contribution pensions, having some guaranteed income for life can make a real difference. It reduces the fear of running out of money and helps people feel more comfortable spending, rather than holding back unnecessarily. For many, using part of their pension to secure a lifetime income, while keeping flexibility elsewhere, can be a powerful way to turn savings into a sustainable retirement.

You can find out more about our annuity products here.

1 - Annuity rates data provided by AMS Retirement. Accurate as of April 2026