'I'm 65 years old with a £100,000 pension pot - how much can I get in retirement?'

Temie Laleye
Thu, 23 Apr 2026 12:39:08 +0000

Many savers wonder how far their pension will stretch in retirement.

For those with a £100,000 pot, recent changes mean the income could be higher than expected.

Annuity rates have risen to 7.62 per cent, giving retirees a boost to the income they can secure from their savings.

Data from the Standard Life Annuity Rate Tracker shows rates improved by 1.46 per cent in the first quarter of 2026 compared with the final three months of last year.

For a 65-year-old in good health with a £100,000 pension pot, this could provide annual payments of up to £7,620.

The rise comes despite uncertain market conditions, with higher long-term interest rates helping to support better annuity deals.

Over a lifetime, the improved rates could deliver an extra £3,000 for men and as much as £4,000 for women purchasing annuities at current levels.

Pete Cowell, Head of Annuities at Standard Life, said: "Annuity rates ended last year at around 7.5 per cent for a healthy 65-year-old, and what we've seen so far in 2026 is that those strong levels have largely held.

"While rates remain slightly below the peak seen last May, they are building from an already high base."

He emphasised that beyond the headline figures, the predictability of payments provides genuine peace of mind for those approaching retirement.

"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," Mr Cowell added.

The comments reflect growing interest in guaranteed income products as economic volatility persists.

The tracker reveals substantial variation in rates depending on when retirees choose to convert their pension savings.

A 60-year-old in good health could secure a rate of 6.85 per cent, yielding £6,850 annually from a £100,000 pot, while a 70-year-old would receive 8.35 per cent, equivalent to £8,350 each year.

This represents a £1,500 annual difference between the two age groups.

Total lifetime income projections also differ markedly by age and gender.

A 65-year-old man purchasing an annuity at current rates could expect to receive approximately £153,000 over his lifetime, whereas a woman of the same age might anticipate £174,000.

For 70-year-olds, men could expect £134,000 in total payments, with women receiving around £153,000.

Mr Cowell highlighted the particular relevance of annuities for the growing number of people retiring with defined contribution pensions rather than traditional final salary schemes.

"With more people retiring with defined contribution pensions, having some guaranteed income for life can make a real difference. It reduces the fear of running out of money and helps people feel more comfortable spending, rather than holding back unnecessarily," he said.

He suggested that a blended approach could work well for many savers.

"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," Mr Cowell concluded.