What does £100,000 buy?
At age 65 in 2026, a healthy person buying a single-life level annuity with £100,000 can expect around £7,200 a year for life — a rate of roughly 7.2%. Adding options such as inflation linking or a spouse's pension reduces the starting income in exchange for extra security. The exact figure depends on the provider, your age, your health and the options you choose.
| Annuity type (£100k, age 65) | Indicative annual income | Leading providers |
|---|---|---|
| Single-life, level | ~£7,200 | Just, Legal & General |
| Single-life, 3% escalating | ~£5,200 | Aviva, Canada Life |
| Joint-life, 100% survivor, level | ~£6,300 | L&G, Aviva |
| Enhanced (smoker/health), level | ~£8,000–£9,400 | Just, Canada Life |
| RPI-linked, single-life | ~£4,900 | Legal & General |
Level vs escalating
A level annuity pays the most at the start but its buying power is eroded by inflation over time. An escalating annuity (e.g. rising 3% a year or linked to RPI) starts lower — around £5,200 instead of £7,200 — but protects you against rising prices. The right choice depends on your other inflation-protected income, such as the State Pension.
Squeezing more from £100k
Two moves matter most. First, use the open market option and compare every provider rather than accepting your pension company's default — this alone can add hundreds a year. Second, declare every health and lifestyle factor; a moderate enhancement could lift a £7,200 income to £8,000 or more, and a serious condition far higher.
Verdict
For a £100,000 pot, Just and Legal & General typically lead the standard tables, with Just strongest for enhanced rates. Always compare the whole market for your exact circumstances. See provider detail in our best annuity rates guide, check enhancement in our enhanced annuity guide, and weigh keeping it invested in our best drawdown providers guide.