Annuity income from a £50,000 pot — a modest but meaningful income.
How much annuity income could a £50,000 pension pot buy in 2025/26? See illustrative rates for single life, joint life, and inflation-linked annuities.
A £50,000 pension pot is roughly the median defined contribution balance for UK adults aged 55-64, according to ONS data. At today's illustrative rates, a single life level annuity purchased at age 65 might produce around £3,200-£3,500 per year — approximately £270 per month. That won't fund retirement on its own, but combined with the full new state pension of £11,502 per year it delivers a total income of around £15,000, which is close to the Retirement Living Standards 'minimum' benchmark set by the PLSA. The key decision at this pot size is whether to lock in certainty with an annuity or keep flexibility with drawdown. With only £50,000, sequence-of-returns risk in drawdown is high — a bad first year could permanently damage a small pot.