Ways to get a guaranteed pension income
"Guaranteed income" means money you cannot outlive and that does not fall with markets. Three things deliver it: a lifetime annuity bought with your pension pot, a defined benefit (final salary) pension, and the State Pension. For most people converting a pot, a lifetime annuity is the route to guaranteed income, with fixed-term annuities offering a halfway option.
| Option | How income is guaranteed | Indicative rate/benefit | Provider |
|---|---|---|---|
| Lifetime annuity | Insurer pays for life | ~7.2% at 65 | L&G, Aviva, Canada Life, Just |
| Enhanced annuity | Higher rate for health | +10% to +30% | Just, Canada Life |
| Fixed-term annuity | Guaranteed income + maturity value | Term-based | Canada Life, Just |
| Defined benefit pension | Employer-backed, inflation-linked | Scheme formula | Workplace scheme |
| State Pension | Government, triple-locked | ~£11,973/yr (full new) | DWP |
Annuities: the simplest guaranteed income
A lifetime annuity converts your pot into a fixed income for life. At 65 a healthy person can expect around 7.2% on a single-life level basis — roughly £7,200 a year per £100,000. Adding inflation protection or a spouse's pension lowers the starting rate but increases security. Shopping the whole market and declaring health can boost income by 10–30%.
The role of the State Pension
The full new State Pension of around £11,973 a year (2026) is itself a valuable guaranteed, triple-locked income. Many retirees use it as their income floor, then top it up with an annuity to cover essential spending, while keeping any remaining pot in flexible drawdown for discretionary spending.
Verdict
For guaranteed income from a pot, a lifetime annuity from Legal & General, Aviva, Canada Life or Just is the core option, with enhanced rates if you qualify on health. A final salary pension, if you have one, is rarely worth giving up. Compare rates in our best annuity rates guide, check enhancement in our enhanced annuity guide, and weigh flexibility in our best drawdown providers guide.