At what age is it best — to buy an annuity?
How age, income forgone, market rates and health affect annuity timing. Today's age comparisons do not forecast future quotes.
There is no single best purchase age
The starting income available at a later age is only one part of the comparison. Waiting also changes the years of income received, the capital remaining, exposure to investment returns and the rates available on the eventual purchase date. A table comparing different buyers today cannot tell one buyer what their quote will be in five years.
Published income by age
Published examples dated · gross income before tax. Actual quotes depend on the person and contract.
Quote assumptions and source
HL published annuity examples, checked 12 September 2026. Published £100,000 examples, average postcode, monthly payments in advance. Joint-life examples assume a spouse three years younger. Standard examples exclude the separate smoker illustration. Gross pension income before tax; no tax-free cash deducted from the purchase amount. Other purchase amounts are scaled proportionally; actual quotes can differ.
Swipe across the table to compare all columns →
| Purchase age | £100,000 purchase: annual |
|---|---|
| 55 | £6,964 |
| 60 | £7,364 |
| 65 | £8,081 |
| 70 | £8,869 |
| 75 | £10,102 |
These are same-date examples for a single-life, level annuity with no guarantee. Other options have different starting incomes. Compare like-for-like purchase amounts and payment terms before interpreting an age difference.
A worked illustration of waiting
The age-65 example is £8,081 a year before tax. Five full years of those level payments total £40,405, assuming survival. The same-date age-70 example is £8,869 a year.
This is not a forecast or a recommendation to buy now. It holds the purchase amount fixed and ignores tax, inflation, investment returns and withdrawals while waiting. In practice, each of those can change the comparison, and the later quote may be higher or lower than today's age-70 example.
The annuity calculator interpolates between published ages 55–75. It does not predict future market rates or quote for ages beyond the source table.
Health and household circumstances
Health and lifestyle information may affect enhanced quotes. A standard table cannot estimate the effect of a particular condition. Household income needs, dependants and the contract's death benefits also matter; health alone does not determine which retirement-income route is appropriate.
Buying in stages
A hypothetical staged purchase uses only part of the available pot initially and leaves later purchases undecided. It spreads purchases across dates, while leaving the unspent portion exposed to its investment or cash risks. Later rates may be lower, the pot may be smaller, and repeated decisions can add cost and complexity. Staging is not a guarantee against poor outcomes.
Some people explore combinations of annuity and drawdown. The amount of secure income, access to capital and continuing investment risk differ with each allocation.
What to check
Check the pension's access rules, existing guarantees and protections, any cancellation terms, tax-free cash allowances and the purchase amount remaining after cash is taken. A lifetime annuity normally cannot be reversed after the contractual cancellation period. A level payment loses purchasing power as prices rise; other options change the starting income and contract terms.
For the published options, see annuity rates UK. MoneyHelper provides impartial information and a comparison service. Personal recommendations require an appropriately authorised adviser.