Annuity income from a £100,000 pot — the six-figure milestone.

A six-figure pension pot opens up meaningful annuity income. At today's illustrative rates, a single life level annuity at 65 on £100,000 might deliver around £6,400-£7,000 per year — approximately £560 per month. Added to the full state pension, that's roughly £18,000 per year, approaching the PLSA 'moderate' retirement standard of around £23,300. At this pot size, the 25% tax-free lump sum (£25,000) becomes significant — enough for home improvements, a car, or an emergency fund. The remaining £75,000 annuitised still produces a solid base income. Enhanced annuities are worth investigating at any pot size: if you smoke, have high blood pressure, diabetes, or other health conditions, you could receive 20-40% more income from a provider that specialises in impaired life annuities.