State pensioners over 77 can get £8,509 payments on top of DWP state pension
State pensioners aged 75 can get £8,509 on top of their Department for Work and Pensions state pension payments, it has been revealed. An annuity rate is the measure of how much income you get from your annuity.
Legal and General advises that annuities have become much more attractive as pension annuity rates have gone up. That rise means that UK pension savers will get a higher guaranteed income than if they bought an annuity a few years ago. As at 15 June 2026, their latest annuity rate is 7.01%.
The firm predicts a single 75-year-old with no health issues can get £8,509 based on a pension pot of £100,000. However, the actual rate you get will depend on several factors, including your own personal circumstances. Your age, state of health or even where you live can make a difference to the rate you are offered.
How annuity rates are doing in general and which particular provider you choose is another consideration. Different providers offer different rates, so it is always worth shopping around. What sort of product and options you go for also affects payments. You might choose a rate that grows with inflation or want to make sure that payments keep going to a loved one if you die, which will both mean your starting income is lower.
When choosing your annuity, it is very important to make sure that you make the right choices. That is because once your annuity begins, your rate and any options you have chosen are fixed and cannot change. LV adds that the pension annuity cannot be cashed in or surrendered at any time.
Purchasing a pension annuity is a once and for all decision. The options you select when you buy the annuity cannot be changed later on. Annuity payments are classed as income and are subject to income tax and could affect any state benefits you claim. It is worth seeking advice from a financial professional to see what income tax you may be liable for. Depending on how long you live, you may receive less than you paid for your annuity.