Average annuity rates increased to 7.62 per cent in March, boosting potential retirement income, the Standard Life Annuity Rate Tracker has shown.

Annuity pricing improved by 1.46 per cent over the quarter from 7.51 per cent at the end of 2025, as long‑term interest rates remained high.

The data showed that a healthy 65-year-old with £100,000 of pension savings could have received an annual income of up to £7,620, representing an extra £3,000 for men and £4,000 for women over a lifetime.

Standard Life head of annuities, Pete Cowell, said the strong rates from the end of 2025 had “largely held”.

He added: “While rates remain slightly below the peak seen last May, they are building from an already high base. While the headline rate is clearly important, it’s the certainty of income that really underpins people’s financial security.

“With ongoing cost-of-living pressures and heightened geopolitical uncertainty, knowing exactly what income you’ll receive can play an important role in retirement planning.”

Annuity rates increased with age, meaning people who delayed purchasing an annuity could access higher rates later in retirement, despite potentially receiving income for a shorter period.

In March 2026, rates stood at 6.85 per cent for a healthy 60-year-old and 8.35 per cent for a healthy 70-year-old, translating into annual incomes of £6,850 and £8,350 respectively from a £100,000 pension pot.

Cowell concluded: “For many, using part of their pension to secure a lifetime income, while keeping flexibility elsewhere, can be a powerful way to turn savings into a sustainable retirement.”

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