{"id":248751,"date":"2025-10-29T13:43:08","date_gmt":"2025-10-29T13:43:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/248751\/"},"modified":"2025-10-29T13:43:08","modified_gmt":"2025-10-29T13:43:08","slug":"savers-with-100000-pension-pot-see-670-income-rise-check-how-much-you-can-get","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/248751\/","title":{"rendered":"Savers with \u00a3100,000 pension pot see \u00a3670 income rise \u2013 check how much you can get"},"content":{"rendered":"

Pensioners with \u00a3100,000 in retirement savings can now enjoy around \u00a3670 more a year in guaranteed income than they could 12 months ago, thanks to a sharp rise in annuity returns.<\/p>\n

According to the Standard Life Annuity Rates Tracker, average payouts reached 7.65 per cent in September 2025, up from 6.98 per cent a year earlier, an increase of almost 10 per cent.<\/p>\n

That means a healthy 65-year-old who invests \u00a3100,000 into an annuity today would receive about \u00a37,650 a year in guaranteed income.<\/p>\n

Standard Life says the extra \u00a3670 a year is roughly equivalent to the cost of a weekend break for two in the UK, offering retirees a little more breathing room in their budgets.<\/p>\n

The surge in returns marks a major shift in retirement planning, making annuities far more appealing for those wanting a guaranteed income for life.<\/p>\n

At current levels, pensioners can now recover their original investment in around 13 years, meaning a 65-year-old only needs to live to 78 to start receiving more than they paid in. That\u2019s nearly a decade sooner than during periods when rates were at their lowest.<\/p>\n

According to the Standard Life Annuity Rates Tracker, a healthy 65-year-old man with a \u00a3100,000 pension pot could expect total payments of around \u00a3154,000 over his lifetime, while a woman of the same age could receive roughly \u00a3171,000. <\/p>\n

The difference reflects women\u2019s longer average lifespan, resulting in more years of guaranteed income from the same initial investment.<\/p>\n

\"Pensioner<\/p>\n

Retirees with \u00a3100,000 pension pot can get an extra \u00a3670 a year as returns hit 10-year high<\/p>\n

| GETTY <\/p>\n

Overall, the improved market conditions mean retirees are getting significantly better value for their savings. Standard Life\u2019s data shows a healthy 65-year-old man would receive about \u00a314,000 more over his lifetime compared to a year ago.<\/p>\n

Women of the same age benefit even more, seeing their total expected income rise by around \u00a315,000 due to their longer life expectancy.<\/p>\n

For younger retirees, the gains are more pronounced – a 60-year-old man could see lifetime income increase by \u00a316,000, whilst women at 60 might gain \u00a319,000 compared to September 2024 figures.<\/p>\n

Older purchasers also benefit, though to a lesser degree, with 70-year-old men receiving \u00a310,000 more and women \u00a311,000 more in total lifetime income.<\/p>\n

\"Pension<\/p>\n

Women of the same age benefit even more, seeing their total expected income rise by around \u00a315,000 due to their longer life expectancy<\/p>\n

| GETTY<\/p>\n

The tracker shows rates improve with age, reaching 8.38 per cent for 70-year-olds, though earlier purchases typically yield higher total returns due to longer payment periods.<\/p>\n

Pete Cowell, Head of Annuities at Standard Life, said: “Annuity rates remain strong and continue to offer valuable income certainty for retirees, following a slight dip since May. <\/p>\n

“Notably, at today’s rates, a 65-year-old would need to live to 78 to break even\u2014almost a decade earlier than during the rate lows. In addition, around half of customers could qualify for an enhanced annuity, unlocking even higher income and a shorter payback period.”<\/p>\n

\"Couple<\/p>\n

Research indicates that 35 per cent of UK adults over 50 desire stable retirement income<\/p>\n

| GETTY<\/p>\n

Research indicates that 35 per cent of UK adults over 50 desire stable retirement income, whilst 24 per cent want both regular payments and reserves for unexpected costs.<\/p>\n

Mr Cowell continued: “It\u2019s important to remember that annuities offer flexibility and can be tailored to suit different retirement needs. While some people might prefer the certainty of a lifetime annuity, others might choose to keep part of their savings in reserve, and you don\u2019t have to annuitise your entire pension pot. <\/p>\n

“Meanwhile, for those who want to adjust their spending more regularly, a fixed-term annuity can provide a way to secure income over the short term, giving retirees the security of knowing their bills will be met while providing an element of flexibility.”<\/p>\n

Mr Cowell noted that planned inheritance tax changes in 2027 are encouraging more people to explore annuities as part of their retirement strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"Pensioners with \u00a3100,000 in retirement savings can now enjoy around \u00a3670 more a year in guaranteed income than…\n","protected":false},"author":2,"featured_media":248752,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,187,4363,184,185,13296],"class_list":{"0":"post-248751","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-money","13":"tag-pensions","14":"tag-personal-finance","15":"tag-personalfinance","16":"tag-sgg"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/248751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=248751"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/248751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/248752"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=248751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=248751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=248751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}