What to look for in an annuity provider
An annuity converts your pension pot into a guaranteed income for life. Because the rate is locked in permanently, choosing the right provider and shopping the whole market is one of the most important financial decisions you will make. The headline rate, financial strength, and whether they specialise in enhanced (health-based) annuities all matter.
| Provider | Specialism | Indicative single-life rate at 65 | Notable for |
|---|---|---|---|
| Legal & General | Standard & enhanced | ~7.2% level | Strong rates, big balance sheet |
| Aviva | Standard & enhanced | ~7.1% level | Existing-customer top-ups |
| Canada Life | Enhanced & flexible | ~7.2% level | Enhanced underwriting |
| Just | Enhanced specialist | ~7.3% level (often higher enhanced) | Best for health conditions |
| Standard Life | Standard & fixed-term | ~7.0% level | Brand, flexible options |
Rates change daily — and shopping around pays
Annuity rates move with gilt yields and differ between providers, so the best provider is whoever offers the highest rate for your circumstances on the day you buy. Using the open market option rather than accepting your pension provider's default can lift your income by 10–20%, and far more if you qualify for an enhanced rate.
Don't ignore financial strength
Because the promise lasts decades, the provider's solvency matters. All five above are large, well-capitalised insurers covered by the FSCS, which protects 100% of annuity income with no upper limit if the insurer fails. That safety net means you can prioritise the best rate.
Verdict
Just often leads for anyone with health or lifestyle factors, while Legal & General, Aviva and Canada Life trade places at the top of the standard tables month to month. Always compare the whole market. See our best annuity rates guide, check whether you qualify for more in our enhanced annuity guide, and weigh the alternative in our best drawdown providers guide.