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Pension Annuity

Get a guaranteed annuity income for life

What is a Pension Annuity?

A pension annuity is a product that converts your pension pot into guaranteed regular income for the rest of your life, no matter how long you live. With a pension annuity, you'll always know exactly how much you're getting, come rain or shine.

That's not the case with other retirement income options, which makes annuities one of the most reliable ways to finance your retirement. For more on how they work, visit our What is an annuity? page.

There are a few different annuity options to consider following your quote: 

  • Lifetime annuity: This is another name for a standard pension annuity, which regularly pays you a guaranteed sum for the rest of your life. They usually end when you die unless you've selected death benefits such as a guaranteed minimum payment period or value protection.
  • Joint lifetime annuities: These regularly pay you a guaranteed sum for the rest of your life, then pay out to a spouse, civil partner or financially dependant partner if they outlive you.
  • Enhanced annuities: These pay out at a higher rate than standard annuities. They’re usually for people with particular health or lifestyle issues.

You can find out more about these and other options in our Types of annuity article.

Our annuity calculator is a handy tool that will help you see how much you might get from your pension with a pension annuity and how that could change depending on when you buy it.

And finally, we should mention a key tax point:

  • You’ll have to pay income tax on any payments from your annuity. The exact amount due will depend on your circumstances.

Why get a quote with L&G?

Help getting you the best deal

When you get a quote with us, we'll also check if there are better deals available. You'll also have the option of seeing who's offering this by visiting our partner website Annuity Ready.

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Compare product and options

As well as getting a quote for our Pension Annuity, you can also quote for our Fixed Term and Cash-Out Retirement Plans. You’ll be able to get multiple quotes on different products to see how the different options affect your level of income.

Trusted annuity provider

UK families have been trusting Legal & General to look after their finances for over 185 years. When shopping around for an annuity one in every three people choose us.

The choices you make may affect your income for the rest of your life, and you can't change your options later. We strongly recommend seeking financial guidance or advice.

Pension Wise is a government service from MoneyHelper that offers free impartial pension guidance. Available if you're 50 or over, you should consider having a free Pension Wise appointment, before you decide how to access your pension. 

Pension and retirement advice from Legal & General’s team of expert advisers. If you’re aged 55 or over and want to access your pension our advisers can give you advice that’s tailor-made for you, so you can be confident you’ve made the best choices for your future. The first no-obligation call is free.

Get a quote

We can give you an online quote if...

  • You have a Defined Contribution pension pot. If you have a Defined Benefit Pension you need to get advice from a financial adviser first.
  • Your pot is at least £5,000 (for a Pension Annuity) or at least £10,000 (for a Fixed Term or Cash-Out Retirement Plan).
  • You're aged between 54 years 9 months and 84 years 9 months.

Always compare what we can offer with what's available from other providers, as they may have more appropriate products or be able to offer a higher retirement income.

We can't give you an online quote if...

  • Your pension provider offers a Guaranteed Annuity Rate, a Guaranteed Minimum Pension, or any other guaranteed or valuable benefits. You may lose these by moving your pension pot from them.
  • You have an overseas address.
  • You would prefer to receive your quotes by email or post, instead of online or by telephone.

If any of these apply to you, call 0800 048 2446. We may record and monitor calls.

Quote and apply for Pension Annuity

We aim to make this process simple, clear and jargon free.

Online Quote

If you know what you want and have your paperwork to hand, it only takes about 15 minutes to get an online annuity quote.

Our online quote journey has been designed to be used on a larger screen size, such as a laptop or desktop, for the best experience. 

Call for a quote

Our UK based Customer Services Team will be pleased to give you a quote over the phone.  

0800 048 2446

Lines open Monday to Friday 9am to 5pm.

We may record and monitor calls.

Need expert advice?

If you're considering an annuity, our Retirement Advice Service can help you make the right decision. We'll help you understand your choices and recommend the best products for your retirement needs.

Find out how advice can help you achieve your ideal retirement.

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What are the latest annuity rates?

Could now be the best time to buy an annuity? We look at what this means for your retirement income.

Common annuity questions

'Pension' could be used to refer either to the amount that you have saved in your pension pot through private or workplace pensions, or to the state pension, which is paid by the Government.

A pension annuity is a product that you can buy with your pension pot, which guarantees to pay you an income for the rest of your life.

Guidance helps you to identify and narrow down your choices in an impartial way. It won’t tell you what’s right for you but will explain your options and provide information so that you can choose what you want to do.

Advice considers your personal and financial circumstances and recommends specific products or actions to be taken that helps you achieve your goals.

Find out more.

There are lots of different types of annuity to choose from. And some have benefit options available too. You can learn more in our ‘Types of annuity’ article. 

We only sell lifetime and enhanced annuities.

An enhanced annuity is an increased income that you could get, if you have any medical conditions or lifestyle risks. You'll need to answer some medical and lifestyle questions to see if this applies to you. You can learn more in our enhanced annuities article

If you apply for a Pension Annuity, you have 30 days from the date you receive our confirmation that your annuity has started to change your mind. If you do not take this opportunity to cancel, your annuity will continue for the rest of your life.

There are options you can choose when buying an annuity that guarantees some money goes to your loved ones when you die. You can learn more in our article 'What happens to annuities when you die?'.

From 1 June 2022, the Financial Conduct Authority now requires pensions providers to refer customers to Pension Wise guidance and explain the nature and purpose of this guidance, when they decide to access their pension savings.

Pension Wise from MoneyHelper is a free and impartial Government pension guidance service.

Your decision about which options to choose is likely to be influenced by many factors, such as how much income or cash you need now and in the future. You should also consider your personal circumstances and the impact that your choices may have on taxation, State Benefits, Annual Allowances and any dependants.

Next steps

Now that you’ve learnt more about our Pension Annuity, why not look at other products available as part of your shopping around. Other providers may have more appropriate products or be able to offer a higher level of retirement income.

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Need some help?

Making well-informed decisions about how to finance your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy:

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Retirement guidance

Pension Wise from MoneyHelper

The government’s free and impartial service, offering guidance to make money and pension choices clearer for over 50s.

To find out more or book an appointment online click below or call.

0800 011 3797

Monday to Friday 9am to 5pm.
Calls may be recorded and monitored.

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Retirement advice

Retirement Advice Service from Legal & General

Our advisers are experts in retirement regulated by the Financial Conduct Authority, so you can trust them to provide impartial advice and a personal recommendation that’s right for you.

0808 304 9155

Monday to Friday 9am and 5pm.
Calls may be monitored and recorded.

Speak with us

Speak with us

Our colleagues in Cardiff are always happy to answer your questions.

0800 048 2446

Monday to Friday 9am to 5pm.
Calls may be monitored and recorded.

Our annuity experts
Joe Mclean - Senior Product Manager

Joe Mclean

Senior Product Manager, Product & Proposition, Retail Annuities

Joe manages our three guaranteed income retirement pension products – our Fixed Term and Cash-Out Retirement Plans, and our Pension Annuity. He makes sure they offer everything our customers need, are competitive in the marketplace and meet all relevant risk and regulatory requirements.

 

 

 

More about Joe
Nick Theobald - Product Technical Manager

Nick Theobald

Product Technical Manager, Product & Proposition, Retail Annuities

Nick’s been with us for his entire career, spending over 35 years helping our customers in many different ways. Since 2019, he’s been a Product Technical Manager focusing on annuities. Previously, he’s also worked as a Conduct Risk Monitoring Consultant, Senior Pension Specialist and Service Delivery Manager, among other roles.

More about Nick