• The Standard Life Annuity Rate Tracker reveals that average annuity rates rose to 7.62% in March 2026
  • Against a volatile market backdrop, annuity rates proved resilient, rising 1.46% in the first quarter of 2026 compared with the end of Q4 2025
  • A healthy 65-year-old with a £100,000 pension pot could expect to receive up to £7,620 per annum

Annuity rates rose in March 2026, reaching 7.62%, according to the Standard Life Annuity Rate Tracker. With long term interest rates remaining high, annuity pricing improved by 1.46% compared with the end of 2025. A healthy 65-year-old with a £100,000 pension pot could now expect an annual income of up to £7,620 which could translate to an additional £3,000 for a male and up to £4000 for a female over the course of someone’s lifetime.

  Annuity rates – Q1 2026
Age Average annuity rate March 2026 Average annuity rate December 2025 % change in rates
60 6.85% 6.74% 1.63%
65 7.62% 7.51% 1.46%
70 8.35% 8.25% 1.21%

Pete Cowell, Head of Annuities at Standard Life, said: “Annuity rates ended last year at around 7.5% for a healthy 65-year-old, and what we’ve seen so far in 2026 is that those strong levels have largely held. While rates remain slightly below the peak seen last May, they are building from an already high base. While the headline rate is clearly important, it’s the certainty of income that really underpins people’s financial security. With ongoing cost of living pressures and heightened geopolitical uncertainty, knowing exactly what income you’ll receive can play an important role in retirement planning.”

About the Annuity Rate Tracker

The Tracker, developed by Standard Life, monitors current average 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, as well as the total income possible from a fixed-term annuity.

Total lifetime income*

According to the Tracker, a healthy 65-year-old male who bought an annuity in March 2026 at a rate of 7.62% could expect a total lifetime income of £153,000. For a female of the same age, the expected income was £174,000.

Meanwhile, a healthy 70-year-old who bought an annuity in March 2026 could expect a rate of 8.35%. For a man, this would provide a total lifetime income of £134,000 while a woman could expect to receive £153,000.

  Total expected income: Q1 2026 – male
Age Total expected income - March 2026 Total expected income - December 2024 Total expected income difference
60 £167,000 £164,000 £3,000
65 £153,0000 £150,000 £3,000
70 £134,000 £131,000 £3,000
  Total expected income: Q1 2026 - female*
  Total expected income - March 2026 Total expected income - December 2024 Total expected income difference
60 £188,0000 £185,000 £3,000
65 £174,000 £170,000 £4,0000
70 £153,000 £150,000 £3,000

*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 March 2026, rates for a healthy 60-year-old were 6.85% compared to 8.35% for a healthy 70-year-old. This results in an annual income of £6,850 for a 60-year-old versus the £8,350 a healthy 70-year-old may expect to receive on a £100,000 pension pot – a difference of £1,500.

Pete continued, “With more people retiring with defined contribution pensions, having some guaranteed income for life can make a real difference. It reduces the fear of running out of money and helps people feel more comfortable spending, rather than holding back unnecessarily. For many, using part of their pension to secure a lifetime income, while keeping flexibility elsewhere, can be a powerful way to turn savings into a sustainable retirement.”

“Looking ahead, we expect annuity rates, as well as the demand for these types of products, to remain strong, especially with pensions being brought into scope for inheritance tax from 2027. Wealthier savers may be encouraged to access more of their pensions, with annuities becoming an increasingly attractive way of doing so. It's also encouraging to see growing industry and adviser recognition on the flexible ways a guaranteed income can be incorporated into a broader decumulation strategy, using annuity products and options to create more tailored retirement journeys that meet specific needs in retirement.”

-Ends-

Notes to editors

* Annuity rates data provided by AMS Retirement. Accurate as of April 2026


Media enquiries

For further information, photos, video content or interviews, contact:


Samantha Griffith
PR Manager
Standard Life, part of Phoenix Group
07752 465345
samantha_griffith@standardlife.com

 

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

Please note

Phoenix Group plc changed its name to Standard Life plc on 2 March 2026. The name (being Phoenix Group plc) contained in the press release was accurate as at the original publication date and has not been updated.