![\"Couple](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/couple-looking-at-pension-documents.jpg\")
The surge in annuity rates is primarily due to rising interest rates | GETTY<\/p>\nMany savers wonder how far their pension will stretch in retirement.<\/p>\n
For those with a \u00a3100,000 pot, recent changes mean the income could be higher than expected.<\/p>\n
Annuity rates have risen to 7.62 per cent, giving retirees a boost to the income they can secure from their savings.<\/p>\n
Data from the Standard Life Annuity Rate Tracker shows rates improved by 1.46 per cent in the first quarter of 2026 compared with the final three months of last year.<\/p>\n
For a 65-year-old in good health with a \u00a3100,000 pension pot, this could provide annual payments of up to \u00a37,620.<\/p>\n
The rise comes despite uncertain market conditions, with higher long-term interest rates helping to support better annuity deals.<\/p>\n
Over a lifetime, the improved rates could deliver an extra \u00a33,000 for men and as much as \u00a34,000 for women purchasing annuities at current levels.<\/p>\n
Pete Cowell, Head of Annuities at Standard Life, said: “Annuity rates ended last year at around 7.5 per cent for a healthy 65-year-old, and what we’ve seen so far in 2026 is that those strong levels have largely held. <\/p>\n
“While rates remain slightly below the peak seen last May, they are building from an already high base.”<\/p>\n
He emphasised that beyond the headline figures, the predictability of payments provides genuine peace of mind for those approaching retirement.<\/p>\n
“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,” Mr Cowell added.<\/p>\n
The comments reflect growing interest in guaranteed income products as economic volatility persists.<\/p>\n
The tracker reveals substantial variation in rates depending on when retirees choose to convert their pension savings.<\/p>\n
A 60-year-old in good health could secure a rate of 6.85 per cent, yielding \u00a36,850 annually from a \u00a3100,000 pot, while a 70-year-old would receive 8.35 per cent, equivalent to \u00a38,350 each year.<\/p>\n
This represents a \u00a31,500 annual difference between the two age groups.<\/p>\n
![\"Pensioner](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/pensioner-couple.jpg\")
Total lifetime income projections also differ markedly by age and gender<\/p>\n
| GETTY<\/p>\n
Total lifetime income projections also differ markedly by age and gender.<\/p>\n
A 65-year-old man purchasing an annuity at current rates could expect to receive approximately \u00a3153,000 over his lifetime, whereas a woman of the same age might anticipate \u00a3174,000.<\/p>\n
For 70-year-olds, men could expect \u00a3134,000 in total payments, with women receiving around \u00a3153,000.<\/p>\n
Mr Cowell highlighted the particular relevance of annuities for the growing number of people retiring with defined contribution pensions rather than traditional final salary schemes.<\/p>\n
![\"Couple](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/couple-on-laptop.jpg\")
Using part of their pension to secure a lifetime income can be a powerful way to turn savings into a sustainable retirement<\/p>\n
| GETTY<\/p>\n
“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,” he said.<\/p>\n
He suggested that a blended approach could work well for many savers.<\/p>\n
“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,” Mr Cowell concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"Many savers wonder how far their pension will stretch in retirement. For those with a \u00a3100,000 pot, recent…\n","protected":false},"author":2,"featured_media":546706,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,2222,4178,4174,4175,2331,56,54,55],"class_list":{"0":"post-546705","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-money","11":"tag-pensions","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-sgg","15":"tag-uk","16":"tag-united-kingdom","17":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/546705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=546705"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/546705\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/546706"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=546705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=546705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=546705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}