Pension annuity calculators can help you estimate how much of an annuity’s interest you could expect as part of your retirement income in future, however these online calculators only return raw figures without taking your personal circumstances into account. A specialist annuities adviser will know exactly how to compare annuity rates and find you the best annuity deals possible for you.
As soon as you turn 55 (57 from 6 April 2028), up to 25% of your pension fund may be tax-freely extracted as a lump sum, and used towards buying an annuity that provides you with guaranteed income for life regardless of stock market or economic conditions. A pension lifetime annuity can serve both as your main source of retirement income or supplement other sources like a drawdown pension or savings account.
An important distinction between pension annuity and savings or investment accounts lies in how your money saved in your pension pot is usually invested, giving it the potential to grow over time. You have the option of keeping this capital invested while withdrawing regular income via drawdown arrangements, while taking out an annuity means giving up this option, which may prove particularly advantageous in low growth environments.
Money Helper pension annuity calculator is easy and quick to use, featuring clear input options and an informative visual of forecast results. This tool makes assumptions about how long your retirement pot will last when drawing down at your target rate and illustrates inflation’s effect on purchasing power; additionally it takes into account new State Pension amounts while assuming your defined benefit pension will increase annually to reflect inflationary changes.
Aviva Retirement Calculator is another useful annuity calculator, enabling you to model different scenarios and understand how much your income would vary due to changing retirement age or contributing more money into your pension fund. This tool strives to balance ease-of-use with depth of analysis while explaining all assumptions clearly.
The Money Advice Service also offers an annuity calculator that makes life simpler for its users. Simply input how much of your pension pot you wish to withdraw each month, your desired monthly income goal, and when your retirement date will be. The calculator then estimates how long your funds will last by taking demographic average life expectancies into account while accounting for income tax payments. Furthermore, the calculator allows users to add any existing defined benefit pensions they already possess as well as showing annual increases from adding Unisex Annuities – or joint life annuities – both you and your partner would benefit.