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List Of Annuity Providers

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Rates updated: 20 September 2014

Searching for a competitive annuity rate is an essential part of ensuring you obtain the best possible income in retirement.

Annuity rates can vary significantly and a rate table is an effective tool to compare the rates offered by providers for differing circumstances.

What factors affect an annuity rate?

There are several factors that affect the rates offered by annuity companies and these are outlined below:

Health and Lifestyle
Whether you are overweight, consume a high level or alcohol or currently smoke will affect the rate offered to you. Also if you have suffered a medical condition such as a heart attack or a stroke, it is deemed that your life expectancy will be reduced and therefore your annuity income will be higher.

Postcode
Some annuity companies will also base their rates on your postcode as people in less affluent areas are expected to have a shorter life expectancy than those living in wealthier areas.

Other Factors
There are a number of factors that affect the annuity rate that providers can offer, beyond your own personal circumstances. These can include:

The value of government bonds, or gilts, which insurance companies buy to fund annuities.

The Bank of England base rate, which has an influence of the level of interest the government will pay on its bonds.

Demand for gilts - when they are in high demand, interest payments fall, depressing annuity rates. When they are in low demand, rates may rise.

Other monetary policy - quantitative easing (QE) has also affected annuity rates, as this pushes gilt yields down further, as the purchase of gilts in mass quantity by the Bank of England has reduced interest payments.

Example Annuity Rates updated on 20 September 2014

We have included current annuity rates to provide some examples of what is available. The rates quoted are for a monthly annuity payable in arrears and do not include a dependents pension which might be important for you to consider. The companies we have quoted from include Legal and General, MGM Advantage, Reliance Mutual, Partnership, LV=, Canada Life, Prudential, Standard Life, Aviva, Just Retirement, Scottish Widows, Friends Life and Hodge Lifetime.

Typical Annuity Rates At Age 60 For £50,000


Age 60
Pension Fund £50,000
Non-SmokerSmokerHeart Attack
Level, no guarantee£2,641.92£2,641.92£3,060.00
Level 5 year guarantee£2,639.04£2,639.04£3,043.80
RPI Linked - no guarantee£1,405.80£1,405.80£2,009.52
RPI Linked - 5 year guarantee£1,404.84£1,404.84£2,001.84
Last Updated: 20 September 2014 (Source: PayingTooMuch.com)

Typical Annuity Rates At Age 65 For £50,000


Age 65
Pension Fund £50,000
Non-SmokerSmokerHeart Attack
Level, no guarantee£2,952.32£2,952.32£3,144.24
Level 5 year guarantee£2,942.76£2,942.76£3,513.60
RPI Linked - no guarantee£1,696.80£1,696.80£2,508.36
RPI Linked - 5 year guarantee£1,694.40£1,694.40£1,583.88
Last Updated: 20 September 2014 (Source: PayingTooMuch.com)