Disclaimer: Views in this blog do not promote, and are not directly connected to any Legal & General Investment Management (LGIM) product or service. Views are from a range of LGIM investment professionals and do not necessarily reflect the views of LGIM. For investment professionals only.
Reviewed by Joe Mclean, Nick Theobald.
What is a Pension Annuity?
A pension annuity is a product that converts your pension pot into guaranteed regular income for the rest of your life, no matter how long you live. With a pension annuity, you'll always know exactly how much you're getting, come rain or shine.
That's not the case with other retirement income options, which makes annuities one of the most reliable ways to finance your retirement. For more on how they work, visit our What is an annuity? page.
There are a few different annuity options to consider following your quote:
- Lifetime annuity: This is another name for a standard pension annuity, which regularly pays you a guaranteed sum for the rest of your life. They usually end when you die unless you've selected death benefits such as a guaranteed minimum payment period or value protection.
- Joint lifetime annuities: These regularly pay you a guaranteed sum for the rest of your life, then pay out to a spouse, civil partner or financially dependant partner if they outlive you.
- Enhanced annuities: These pay out at a higher rate than standard annuities. They’re usually for people with particular health or lifestyle issues.
You can find out more about these and other options in our Types of annuity article.
Our annuity calculator is a handy tool that will help you see how much you might get from your pension with a pension annuity and how that could change depending on when you buy it.
And finally, we should mention a key tax point:
- You’ll have to pay income tax on any payments from your annuity. The exact amount due will depend on your circumstances.
Why get a quote with L&G?
The choices you make may affect your income for the rest of your life, and you can't change your options later. We strongly recommend seeking financial guidance or advice.
Pension Wise is a government service from MoneyHelper that offers free impartial pension guidance. Available if you're 50 or over, you should consider having a free Pension Wise appointment, before you decide how to access your pension.
Pension and retirement advice from Legal & General’s team of expert advisers. If you’re aged 55 or over and want to access your pension our advisers can give you advice that’s tailor-made for you, so you can be confident you’ve made the best choices for your future. The first no-obligation call is free.
Get a quote
Quote and apply for Pension Annuity
We aim to make this process simple, clear and jargon free.
Common annuity questions
Annuity articles
Need some help?
Making well-informed decisions about how to finance your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy:
Our annuity products reviews
As of 21 October 2025, 26 customers have rated our annuities giving an average star rating of 4.3 out of 5 on Trustpilot. The score of 4.3 corresponds to the star label ‘Excellent’.
Another slider
A critical illness can affect anyone at any age and can turn lives upside down. Having a back-up plan in place can alleviate some of the financial stress of the situation. Some people may use their savings to supplement their loss of income, others may rely on an employment benefit package, while others may find that some form of critical illness insurance is their best option.
A critical illness can affect anyone at any age and can turn lives upside down. Having a back-up plan in place can alleviate some of the financial stress of the situation. Some people may use their savings to supplement their loss of income, others may rely on an employment benefit package, while others may find that some form of critical illness insurance is their best option.
