How much does an annuity cost and how do I buy one?

Yes. You may be able to buy an annuity using cash savings rather than a pension pot. Whether this is the right option depends on your circumstances, tax position and retirement goals. If you’re not sure, we’d recommend chatting with a financial adviser.

Yes, you can buy an annuity without a pension. But that may or may not be a good idea. It depends on a variety of other factors, like where you’ve saved your non-pension cash and what else you could do with it. If you’re not sure, we’d recommend chatting with a financial adviser.

Yes. While many people buy an annuity using their pension savings, you can also use other types of savings or cash. Whether this is right for you depends on your circumstances, tax position and retirement goals. If you're unsure, consider speaking to a financial adviser.

The right annuity for you will depend on your retirement income needs, health, age and personal circumstances. You should consider factors such as whether you want payments to increase over time, provide benefits to a loved one after your death, or include a guaranteed payment period.

It's important to choose carefully, as you can't normally change an annuity once it's been set up. If you're unsure which option is right for you, consider comparing providers and seeking financial advice.

You can buy an annuity directly from a provider or through a financial adviser. A good first step is to get a quote and compare your options. Before making a decision, it's worth shopping around to see what different providers offer.

Yes. You don't have to use your entire pension pot to buy an annuity. Some people use part of their pension to secure a guaranteed income and keep the rest invested or take it in other ways, depending on their retirement plans.

No, you can’t change your annuity once you’ve bought it. But you can opt for annuities that change in a pre-agreed way. For example, you could set up your payments to rise in line with inflation or have them transfer to a loved one after you die.

There’s no right or wrong time for buying an annuity. UK savers probably won’t need the guaranteed income an annuity gives them until they start working part time or stop working entirely. It could be better to wait, because providers usually offer better rates as you grow older.

That’s up to you! You might want the security of a guaranteed income as soon as you’re old enough or you may want to wait a bit for a better deal. If you’re not sure, talk to an adviser.

If you delay buying your annuity, you’ll have to wait longer for your guaranteed income to kick in. But you’ll probably get a better rate when you do buy it. That’s because providers offer older buyers better annuity rates. If you’re not sure when’s best, ask a financial adviser.

Yes, you'll need at least £10,000 to buy an annuity after taking your tax-free cash. If you want to take your 25% tax-free cash out of your pot before you buy your annuity, the minimum amount you’ll need in your pot is £13,333.

You'll also need to be aged 55 or over, although the minimum pension age is due to increase to 57 from 6 April 2028.

When choosing an annuity, it's important to consider your income needs, retirement plans, age and personal circumstances. Once you've bought an annuity, you can't make changes to it, so it's important to choose the right option for your needs.

Yes. Different providers may offer different annuity rates, features and benefits. Comparing quotes can help you find the option that's most suitable for your needs.