What annuity will a £500,000 pension pot buy? half a million, fully secured.
What annuity income will a £500,000 pension pot buy in 2026/27? Model all annuity types and compare with drawdown alternatives.
At £500,000, the tax, inheritance and flexibility trade-offs become more visible. Annuity income is taxable, while money left in drawdown remains invested and subject to investment risk. A blended scenario can change certainty, flexibility, tax timing and death-benefit treatment. Regulated advice may be relevant where the decision is large, irreversible or interacts with other pensions and assets.
What annuity will £500,000 buy in the UK?
Using the current illustrative age-65 single-life level annuity assumptions on this site, a £500,000 pension pot could indicate around £39,460/year before tax. Actual quotes depend on age, health, postcode, spouse details, guarantee period, escalation, payment timing and market rates on the quote date.
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