What impacts the amount of annuity income I will receive?

An Annuity can provide you with a guaranteed income for life in retirement, but there are many different factors which impact how much income an annuity can provide.

The Size of Your Pension

It probably seems quite obvious, but the more of your pension you use to purchase an annuity, the higher your income is likely to be. However, if you don't want to lock your entire pension into an annuity all at once, you could consider purchasing several annuities gradually or move some of your pension into Income Drawdown.

Annuity Rates At The Time You Buy

The amount of income you could receive is determined by annuity rates. These rates are linked to the yield on government bonds, which are highly responsive to changes in interest rates.

This means that they change constantly, and 2023 was a good example of this. Annuity rates hit their highest point since 2007 in 2023, due to the hike in interest rates in the UK.

You often receive higher annuity rates when yields are high, with lower rates when yields are low.

Your Age, Health and Lifestyle Details

The older you are when you purchase your annuity, the more income you are likely to receive. If you disclose unhealthy lifestlyes choices or underlying health conditions, you may also receive more income with an Enhanced Annuity.

Even confirming details like how much alcohol you drink or your weight could mean you get an enhanced rate.

Shopping around for the best annuity income

At Annuity Central, we look at the whole market when providing annuity quotes.

This means we can find you the best deal, and advise you on what the right option would be for you in retirement.

If you would like to find out more about purchasing an annuity and the income you could receive, get in touch with us and we'll provide you with a range of quotes.