What annuity will £300k buy — in the UK?
A £300,000 pension pot can buy very different guaranteed incomes depending on age, health, spouse protection, inflation-linking, guarantee periods, and provider pricing. These figures are illustrations, not quotes.
- ▸Using Hargreaves Lansdown's 30 April 2026 best-buy table, a £300,000 pot at age 65 would imply about £23,700/year from a single-life, level annuity with no guarantee.
- ▸A 50% joint-life level annuity at age 65 would imply about £22,000/year on the same £300,000 pot, before tax.
- ▸An RPI-linked annuity starts much lower: the same £300,000 pot would imply about £16,300/year at age 65 with a 5-year guarantee.
- ▸Actual quotes vary by postcode, health, smoker status, spouse age, payment timing, guarantees, and the rates available on the day you apply.
Direct answer
A £300,000 pension pot could buy roughly £23,700 a year from a single-life, level annuity at age 65, based on Hargreaves Lansdown's best-buy figures for 30 April 2026. That is before income tax and assumes no guarantee period, no spouse income, no inflation increases, and standard health assumptions.
The income changes materially if you change the annuity shape:
| £300k annuity option at age 65 | Approx annual income |
|---|---|
| Single life, level, no guarantee | £23,700 |
| Single life, level, 5-year guarantee | £23,500 |
| Joint life 50%, level, no guarantee | £22,000 |
| Single life, RPI-linked, 5-year guarantee | £16,300 |
Those figures are scaled from a £100,000 quote table, so treat them as a market benchmark rather than a personal quote.
How age changes a £300k annuity
Annuity income usually rises with age because the insurer expects to pay it for fewer years. On the same 30 April 2026 best-buy table, a £300,000 single-life level annuity with no guarantee implies:
| Purchase age | Approx annual income from £300k |
|---|---|
| 55 | £20,000 |
| 60 | £21,100 |
| 65 | £23,700 |
| 70 | £25,900 |
| 75 | £29,500 |
The higher age-75 income is not a free upgrade. It reflects a shorter expected payment period, and it also means waiting years before locking in the guaranteed income.
What reduces the starting income?
The highest headline annuity number is usually a single-life, level annuity with no guarantee. It maximises starting income because payments stop when the buyer dies and do not rise with inflation.
Adding features lowers the starting income:
- Joint-life cover keeps paying a spouse or partner after death, so the insurer expects to pay for longer.
- Inflation-linking starts lower because the payment can rise over time.
- Guarantee periods continue payments for a minimum number of years even if death happens early.
- Monthly in advance vs arrears and other payment choices can shift the quote slightly.
Health can move the number in the other direction. Enhanced annuities can pay more where medical or lifestyle factors reduce life expectancy, so disclosure matters when comparing quotes.
£300k annuity vs drawdown
The same £300,000 pot would produce £12,000/year under a simple 4% drawdown rule. That is lower than the level annuity figure, but drawdown keeps the pot invested and flexible. An annuity gives guaranteed income for life, but the capital is normally exchanged permanently for that income.
That is the central trade-off: certainty versus flexibility. Some retirees use one route, and some model a blend, such as annuitising part of the pot for guaranteed income while leaving the rest in drawdown.
The annuity calculator can model age, annuity type and guarantee period. The same pot can also be modelled with the pension drawdown calculator, the annuity rates UK guide shows the current published rate snapshot, and the wider annuity income by pot size guide shows other pot sizes.
- •Annuity rates change frequently and quotes are normally guaranteed only for a limited time.
- •The figures above are illustrations scaled from published £100,000 best-buy data, not personal quotes.
- •Annuity income is taxable as pension income.
- •You normally cannot buy an annuity from a private pension before age 55, rising to 57 from 2028 for many people.
- •Annuity purchase is usually irreversible after any cooling-off period, so the quote terms and options matter.
- ▸Hargreaves Lansdown's 30 April 2026 best-buy table showed £7,892/year from a £100,000 pension for a 65-year-old buying a single-life, level annuity with no guarantee. [Hargreaves Lansdown]
- ▸MoneyHelper provides a free annuity comparison service and explains that annuity income depends on age, health, options selected and provider pricing. [MoneyHelper]
This is factual information, not financial advice. If you're unsure what's right for your situation, speak to an FCA-regulated financial adviser.