Estimate Your Annuity Income
Independent planning tool for UK retirement estimates. This page is not affiliated with or endorsed by Legal & General.
How this legal & general annuity calculator helps
If you are approaching retirement and considering an annuity, one of the first questions is simple: “How much income can I get?” This calculator gives you a practical estimate using your pension pot size, age, and product choices such as level vs increasing income or single vs joint life cover.
Many retirees start with a quote from providers such as Legal & General, then compare alternatives and product features. This page helps you model those choices before or after you receive a formal quotation.
What the calculator includes
- Pension pot value: the amount available to buy an annuity.
- Tax-free cash: up to 25% can normally be taken first, reducing the pot used to buy income.
- Annuity type: single life usually pays more than joint life because payments stop on first death.
- Guarantee period: protects some payments for 5 or 10 years, usually lowering the starting income.
- Escalation: increasing income starts lower but rises each year.
- Health enhancement: people with certain medical or lifestyle factors may receive higher rates.
- Manual quote input: if you already have a rate from a provider, enter it to override the model rate.
How annuity rates are interpreted here
When you leave the “quoted annuity rate” blank, the tool generates an internal estimate based on age and options. This is for planning only. Actual market rates vary daily and differ by provider, postcode, medical underwriting, and your exact contract terms.
Important context
- Rates are not guaranteed until you accept a live quote.
- A small rate difference can create a large lifetime income difference.
- Open market option shopping is often worthwhile.
Worked example
Suppose you have £200,000 in your pension, take 25% tax-free cash, and buy a single-life level annuity at age 67. You would use £150,000 to purchase income. If your quoted rate is 6.0%, your year-one income is about £9,000 per year (around £750 per month before tax).
If you switch to a joint-life annuity with inflation increases, your starting income may be lower, but you gain stronger long-term protection for your household and purchasing power.
Choosing level vs increasing annuity
Level annuity
Starts higher and stays flat. Helpful if you want maximum income now and expect shorter retirement spending horizons.
Increasing annuity
Starts lower and grows (for example 3% per year). Useful when inflation protection is important and you expect a longer retirement.
Annuity checklist before you buy
- Get quotes from multiple providers, not just one.
- Check enhanced annuity eligibility based on health and lifestyle.
- Consider partner protection (joint life and guarantee period).
- Compare level and escalating options using long-term projections.
- Review tax impact alongside State Pension and any other income.
Frequently asked questions
Is this an official Legal & General calculator?
No. It is an independent educational tool designed to help with retirement planning scenarios.
Can I rely on this for final decisions?
Use it as a guide only. Before purchasing an annuity, request personalized quotes and consider regulated financial advice if needed.
Why does income drop when I add options?
Extra protections (joint life, guarantees, inflation linking) generally reduce your starting income because they increase expected total insurer payouts over time.
Final thoughts
The best annuity decision is rarely about finding the highest first-year payment alone. It is about matching income to your long-term retirement goals, household needs, and risk comfort. Use this calculator to prepare stronger questions, compare alternatives clearly, and approach provider quotes with confidence.