Retirement Income · UK Report
The step most UK retirees skip — and why it can change their retirement income
Thousands of Britons are comparing the entire annuity market before they retire. Many are finding they could get more from the pension they already have — for free, and with no obligation.*
Most people spend the best part of forty years building a pension. Then, at the moment it matters most, a great many of them accept the very first income figure that lands on the doormat.
It is the quiet part of retirement planning that rarely makes the news. When the time comes to turn a pension pot into a guaranteed income, a large number of Britons simply take the quote from the provider they already have. It feels like the easy option — and it may not be the best one available.
Annuity rates are set individually by each provider, and they move. Two companies can offer noticeably different incomes for exactly the same pot, the same age and the same set of circumstances. That gap only becomes visible when you compare.
Which is why thousands of UK retirees are now doing one thing before they sign anything at all: comparing the whole market first.
Context
Why this conversation keeps coming up in the UK
Pension freedoms changed the rules
Since 2015 you have far more choice over how you take your pension. More choice also means more decisions — and far more reason to see what the whole market will pay before you decide.
Annuity rates move with the market
Rates rise and fall alongside interest rates and gilt yields. The income available to you today can look very different to the income that was available a few years ago.
Looking costs nothing, and always has
Comparing annuity rates is free and commits you to nothing at all. You are simply finding out what the market would pay — before you agree to anything.
The overlooked step
The one thing most retirees get wrong
Your existing pension provider will tell you what they will pay. They are under no obligation to tell you what anybody else would — and in most cases, they simply do not.
Shopping around has been standard, long-standing guidance for years. The regulator and the government-backed guidance service both urge anyone considering an annuity to compare more than one provider before committing.
The single most valuable thing you can do before you retire is look at more than one quote.
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Side by side
One quote, or the whole market
The first quote
- One provider — the one you already save with
- A rate they set themselves, with nothing to compare it to
- No way of knowing whether it is competitive
- Usually the quickest, least examined option
The whole market
- Multiple UK annuity providers compared together
- Rates measured against each other, not in isolation
- Personalised to your age, pot and circumstances
- Free to look at, with no obligation to proceed
Little known
Most Britons do not know this can earn them more
There is a part of the annuity market many people never hear about. An enhanced annuity pays a higher income if you have a qualifying health condition or lifestyle factor — because the provider expects to pay that income for a shorter time.
It is not a loophole and it is not discretionary. It is a standard part of the market — and it is exactly the sort of thing that only comes to light when somebody actually compares providers rather than accepting a single quote.
Which? has reported that an enhanced annuity can secure up to 30% more income. That is the difference a comparison can make.*
Up to 30%
more income possible with an enhanced annuity*
Whole market
of UK annuity providers compared, every day
£0
to compare — and no obligation to proceed
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*Source: Which? — enhanced annuities. Individual results vary. Any figure depends on your age, health, pot size and the providers available to you.
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How it works
Three steps, and none of them cost you anything
- 1
Tell us who you are
Complete a short enquiry online. It takes a couple of minutes and you are not committing to anything.
- 2
Shop around quickly and easily
Once you are connected, an FCA-regulated adviser calls to confirm your details and understand your circumstances.
- 3
Receive accurate quotations
Your quotes are based on your own circumstances, with the annuity market compared to find the best rates available to you.
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Based on 494 reviews on Trustpilot for Compare Pension Annuity. Reviews describe customer service and the enquiry experience, not financial outcomes.
Read the reviews on TrustpilotQuestions
What people ask before they compare
Does comparing the market cost me anything?
The comparison is free and comes with no obligation. Ask the adviser about any fees or commission that may apply if you decide to purchase an annuity.
Who can use this?
People exploring income options for a UK pension. Eligibility depends on your age, pension type and the provider’s requirements.
What exactly is an annuity?
An annuity converts pension savings into a regular income. Payments depend on the product and options you choose.
Do I have to buy an annuity?
No. Requesting a comparison does not commit you to buying anything.
What is an enhanced annuity?
An enhanced annuity may pay a higher income based on your health and lifestyle, subject to the provider’s assessment.
Will someone contact me if I complete the enquiry?
An adviser may contact you to discuss your options, in line with the contact preferences and privacy notice on the enquiry form.
Is an annuity decision reversible?
You usually cannot reverse the purchase once the applicable cancellation period has ended. Check the provider’s cancellation terms before proceeding.
Important information
This article is an advertorial and a financial promotion. It is not financial advice and it does not take your personal circumstances into account. You should always consider your own situation, and seek regulated advice if you are unsure.
Annuity income depends on your age, health, the size of your pot and the providers available to you. An annuity is normally a long-term commitment and, once purchased, it is usually not reversible. Figures quoted as a percentage are illustrative and not a promise of return.
You can get free, impartial guidance on your pension options from Pension Wise, part of the government-backed MoneyHelper service, before making a decision.
*The “up to 30% more income” figure relates to enhanced annuities and is sourced from Which?. It is not a typical or guaranteed outcome.