Annuity rates rose in March 2026, reaching 7.62%, according to the Standard Life 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 £4000 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% |
Pete Cowell, Head of Annuities at Standard Life, said: “Annuity rates ended last year at around 7.5% for a healthy 65-year-old, and what we’ve seen so far in 2026 is that those strong levels have largely held. While rates remain slightly below the peak seen last May, they are building from an already high base.
While the headline rate is clearly important, it’s the certainty of income that really underpins people’s financial security. With ongoing cost‑of‑living pressures and heightened geopolitical uncertainty, knowing exactly what income you’ll receive can play an important role in retirement planning.”
About the Annuity Rate Tracker
The Tracker, developed by Standard Life, monitors average level, lifetime 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
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
While buying an annuity earlier in retirement can lead to a higher total income over time, annuity rates generally improve with age. This means that those who delay purchasing an annuity may benefit from more favourable rates later in retirement.
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.
Pete continued, “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.”
