• Fixed-term annuity quotes rose 15% in H1 2026 compared with H2 2025
  • A 65-year-old with a £100,000 pension pot could currently secure £13,800 a year for five years, more than the full new State Pension, while retaining a £50,000 maturity value
  • Growing interest suggests more retirees are exploring ways to combine guaranteed income today with flexibility over future retirement decisions

More people are exploring fixed-term annuities, according to new data from Standard Life, a retirement specialist focused entirely on retirement savings and income. Quote volumes rose 15% in the first half of 2026 compared with the second half of 2025, suggesting growing interest in retirement income solutions that can provide certainty today while preserving flexibility for the future.

The increase comes as retirement planning becomes more flexible and personalised. More people are combining different products and income sources throughout retirement rather than making a single decision when they stop working.

How much income can a fixed-term annuity provide?

A 65-year-old with a £100,000 pension pot could currently secure a guaranteed income of around £13,800 a year for five years while retaining a £50,000 maturity value at the end of the term. That income is higher than the current full new State Pension of £12,548 a year, highlighting how fixed-term annuities can provide meaningful levels of guaranteed income while preserving flexibility for future retirement decisions.

Term Annual income on £100,000 Maturity value
5 years £13,800     £50,000
10 years £9,100 £50,000

Standard Life's latest Retirement Voice research found that people would ideally like to retire at age 62.3 but do not expect to stop working until age 67.6, creating a retirement expectation gap of 5.3 years. For some retirees, fixed-term annuities may provide a way to secure guaranteed income for a defined period while retaining the flexibility to review their options later.

Unlike a lifetime annuity, a fixed-term annuity provides a guaranteed income for an agreed period before returning a maturity value at the end of the term. The client can then decide how to use that maturity value based on their circumstances at the time. The flexibility built into the product means clients can choose different combinations of income and maturity value depending on their priorities. Some may opt for a higher level of guaranteed income during the term, while others may preserve more of their pension savings for future decisions.
 

Pete Cowell

Retirement increasingly looks less like a single event and more like a series of financial decisions made over many years. People's circumstances, spending needs and priorities can change over time, which means flexibility can be just as important as certainty.

The increase in quote volumes suggests fixed-term annuities are becoming part of that conversation. Current rates mean some retirees can secure an income that's higher than the full new State Pension for a set period, while retaining a maturity value for future use. For people who want guaranteed income without giving up future flexibility, that can be an attractive combination.

At the same time, our latest Retirement Voice research shows many people would like to retire more than five years earlier than they currently expect to. While there is no single solution to that challenge, people are increasingly looking for ways to balance income certainty today with flexibility for the future.

- Head of Annuities at Standard Life

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About Standard Life

Standard Life plc is a retirement specialist focused entirely on retirement saving and income.

We are proud to manage £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.

We offer our customers a broad range of retirement, investment and protection products across our customer brands which include Standard Life, SunLife, Phoenix Life and ReAssure.

Our vision is to be the UK’s leading retirement savings and income business, building on Standard Life’s leadership positions in the workplace pensions, pension risk transfer and individual annuity markets, and our growing retail business. Our award-winning services are backed by industry leading apps and strong customer service.

As a FTSE 100-listed group, we are using our size, expertise and influence to deliver better outcomes for customers.

We’ve set targets to help an additional three million customers take steps toward a better retirement by 2035. We want to play our part in delivering a net zero economy and managing our impact and dependency on nature to shape the world our customers will retire into.

Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and in 2026 became one of Britain’s Most Admired Companies.