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        Updated: April 17, 2024

        £100,000 Annuities

        A guide to £100,000 annuities

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        The idea of guaranteed lifetime income is a very attractive prospect, and an annuity can convert your pension into a steady stream of income for the rest of your life or a specified amount of time.

        However, buying an annuity is a big decision, so you need to make sure that it’s the best option for you and, if so, where to buy an annuity with the best rate and features.

        In this article, we’ll be looking at what you can expect from taking out a £100,000 annuity and how to get one.

        We’ll be covering the following topics:

        What annuity will £100k buy?

        The income you’ll receive from a £100,000 annuity will depend on the rate of interest, your age, how long you wish to delay your annuity payments, whether you choose a fixed rate that doesn’t increase with inflation or one that does, and whether you want a single or joint annuity.

        For example, a 61-year-old man purchasing a £100,000 single annuity with an interest rate of 5% could take out a tax-free lump sum of £25,000 and get an annual income of £3,206 (based on a single, non-escalating annuity).

        If he delayed the payments by 4 years, he could receive £4,571 – an increase of £1,365 per year, and a total of £21,550 in growth. If the £100,000 is invested in a pension fund and grows there, the tax-free lump-sum would also increase in value.

        For an accurate projection of how much annuity £100k could get you, talk with one of the experts we work with. Get in touch and we’ll match you with an expert who can discuss your options with you.

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        How can I get better 100k annuity rates?

        Rates are changeable and providers may adjust them through the course of your contract unless you opt to take out ‘inflation protection.’ Rather than settle for the first-rate you find, it’s best to compare them with the help of a financial advisor.

        According to the FCA, 80% of people who purchased an annuity from their pension provider could have received a better deal from another provider.

        Aside from provider’s rates, your own personal circumstances can also affect your rates. For example, if your health deteriorates you may want to talk to an advisor about enhanced annuities.

        To find annuities with the most competitive rates for your circumstances, make an enquiry and we’ll match you with an expert advisor shortly.

        When will I get the benefits of a 100k annuity?

        The longer you can leave your annuity pot to accumulate funds, the more benefits you could potentially receive. You can legally claim your tax-free lump sum and start receiving retirement payments from the age of 55, however, you may find it pays off more to leave it untouched for as long as possible.

        For example, if your £100,000 annuity is predicted to provide you with annual payments of £3,206, by leaving it untouched for even one year this could increase to £3,502.

        What factors may affect my 100k annuity?

        Annuity providers will have criteria upon which to assess applications that include the following:


        Age matters when it comes to how much you’ll receive but the older you are, the better the annuity rate you’ll get.

        If you decide to retire early at 55 with a 100k annuity, you can expect to receive a £25,000 lump sum and around £2,790 annually as a taxable income. If you wait until you reach 70, you’ll still get the same lump sum but your annual amount will be approximately £4,370.

        Type of annuity

        There are different types of annuity which include single or jointfixed term or short term or enhanced annuity where you pay more because you suffer from a health condition.

        A single annuity would typically provide you with larger annual payments. A joint annuity, on the other hand, would ensure that your beneficiary would still receive an income.

        Rather than settle for a less beneficial annuity, seek independent financial advice from an expert pensions advisor who will take your own circumstances into consideration to suggest the best options for you.


        If you have an illness or if you’re in a joint annuity and one of you has a serious health condition, you’ll be offered a better rate as their life expectancy will be shorter. This means the overall contract will have a shorter life, too.

        Speak to an annuities expert

        Before you make a major financial decision, it’s advisable to discuss your options with a professional pensions advisor.

        Give us a call on 0808 189 0463 or make an enquiry and we’ll put you in touch with one of the experts we work with who are experienced in offering advice on annuities and other aspects of your pension investments.

        We don’t charge a fee and there’s absolutely no obligation to make a purchase.

        Ask A Quick Question

        We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in pensions Ask us a question and we'll get the best expert to help.

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        Tony Stevens

        Tony Stevens

        Finance Expert

        About the author

        Tony has worked in a vastly diverse array of areas in the pensions industry for over 20 years. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events.

        Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been “Hope for the best, but plan for the worst”, and believes that the biggest impact that an adviser can have on a client’s life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they want their retirement to be.

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        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

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