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- Annuity rates reach eighteen-year high of 7.75% according to the Standard Life Annuity Rate Tracker
- Rates for a healthy 65-year-old rose 1.17% between April and July 2026
- A healthy 65-year-old with a £100,000 pension pot could expect to receive up to £7,750 per annum.
Annuity rates rose in July 2026, with the average rate for a healthy 65-year-old reaching 7.75%, up from 7.66% in April. Annuity rates have remained resilient over the past year and have hit their highest levels since pension freedoms were introduced.
A healthy 65-year-old with a £100,000 pension pot could now expect an annual income of up to £7,750, compared to £7,660 in April 2026. This could translate to an additional £2,060 over the course of retirement.
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| Annuity rates – July 2026 | |||
|
60 65 70 |
Annuity rate - July 2026 7.06% 7.75% 8.43% |
Annuity rate - April 2026 6.95% 7.66% 8.38% |
% change in rates 1.58% 1.17% 0.60% |
Annuity rates have reached 7.75%, the highest rates since August 2008, underlining just how much the retirement income landscape has shifted in recent years.
At today’s rates, the time it takes to receive back your initial investment has significantly shortened. The payback period for a £100,000 annuity purchase with a rate of around 5% in 2020 would have taken around 20 years to repay. However, with today’s rates closer to 7.75%, that falls to around 13 years, depending on individual circumstances.
About the Annuity Rate Tracker
The Tracker, developed by Standard Life, monitors current annuity rates across the market for those annuitising at ages 60, 65, and 70. It also shows the total lifetime income from an annuity and the extent to which annuity rates improve with age.
Total lifetime income*
According to the Tracker, a healthy 65-year-old male who bought an annuity in July 2026 at a rate of 7.75% could expect a total lifetime income of £156,000. For a female of the same age, the expected income was £177,000.
Meanwhile, a healthy 70-year-old who bought an annuity during the same period could expect a rate of 8.43%. For a man, this would provide a total lifetime income of £135,000 while a woman could expect to receive £155,000.
| Total expected income – male | |||
|
60 65 70 |
Total expected income – July 2026 £173,000 £156,000 £135,000 |
Total expected income – April 2026 £170,000 £155,000 £134,000 |
Total expected income difference £3,000 £1,000 £1,000 |
| Total expected income – female* | |||
|
60 65 70 |
Total expected income – July 2026 £194,000 £177,000 £155,000 |
Total expected income – April 2026 £191,000 £175,000 £154,000 |
Total expected income difference £3,000 £2,000 £1,000 |
*Total expected income figures are based on life expectancy statistics from the Office of National Statistics, based on age annuity is first purchased. Total expected income includes annuity income only and rounded to three significant figures.
Improving rates with age
While buying an annuity earlier in retirement can lead to a higher total income over time, annuity rates generally improve with age. This means that those who delay purchasing an annuity may benefit from more favourable rates later in retirement.
As of July 2026, rates for a healthy 60-year-old were 7.06% compared to 8.43% for a healthy 70-year-old. This results in an annual income of £7,060 for a 60-year-old versus the £8,430 a healthy 70-year-old may expect to receive on a £100,000 pension pot – a difference of £1,370
Trying to predict how the market might perform can be difficult and while rates have remained elevated over recent months, planning ahead is key. For many, having some form of guaranteed income in place can provide a critical foundation for covering core living costs, with more flexible options like drawdown used alongside it to help balance certainty with flexibility.
Media enquiries
* Annuity rates data provided by AMS Retirement. Accurate as of July 2026
For further information, photos, video content or interviews, contact:
-
Darragh Leeson
Senior Public Relations Manager, B2B trade media lead, Pensions and RetirementTelephone:+44 (0)770 727 0001
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About Standard Life
Standard Life is a retirement specialist focused entirely on retirement saving and income.
We are proud to manage around c£317bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better.
With our focus entirely on retirement savings and income we want to be the business that people trust to guide their retirement journey, helping our customers achieve better outcomes and greater financial security in later life.
As a FTSE 100-listed group we are using our size, expertise and influence to shape the world our customers will retire into, and are committed to helping three million more customers by 2035, take action towards a better retirement.
Standard Life is a responsible investor with a clear commitment to supporting a more sustainable future. The Group has achieved its net zero goal across its emissions for 2025 and is working towards net zero investment portfolios by 2050 or sooner.
Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and Carer Positive Exemplary Employer and in 2025 became one of Britain’s Most Admired Companies in 2025.