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In just two years annuity rates have risen by record amounts

In a remarkable turn of fortune, Canada Life has highlighted annuity rates have increased around 54% in just two years.

Back at the start of 2022, a benchmark1  annuity with a £100,000 purchase value would have paid an income in the region of £4,540 a year for someone aged 65 with no health or lifestyle conditions to declare.

Roll the clock forward two years, that same annuity would pay around £7,000 a year, an increase of 54%, driven by rising interest rates and the returns available on gilts. Over the course of a 20-year retirement, the annuity at today’s rates would deliver around £49,200 extra income compared to an annuity sold in January 2022.

Nick Flynn, retirement income director at Canada Life comments on the research:

“Annuities have been on quite a remarkable journey. While many had effectively written off annuities due to the perceived poor value being generated, they are now very much back in vogue due to the rapid change in fortunes. Coupled with relatively benign investment conditions and economic uncertainty, consumers are seeking retirement income security in uncertain times.

“In a perfect storm, annuities are the only safe ship in town which can generate 100% income security, that no matter what happens, your income will continue to be paid. Consumers are seeking a mix and match approach, combining annuities with drawdown, which can often generate a better retirement income. Balancing the need for security and flexibility, and de-risking drawdown investments over time, by banking the annuity rate, can be a smart move.

“While I can’t predict future annuity rate movements, the immediate future for the market is looking very positive. From longer guarantees, 100% value protection, fixed term products, alongside the better rates, there really is something for everyone.

“An independent annuity broker or regulated financial adviser will your best port of call to ensure you get the right solution for your individual circumstances."

Today, a benchmark annuity for someone aged 65, with no pre-existing health or lifestyle conditions, would pay in the region of 7%.

This annuity rate can increase significantly when disclosing common health or lifestyle conditions, such as diabetes, high blood pressure or being a smoker. Age can also have a big influence on the annuity rate offered.



Press enquiries should be directed to:

Elle McAtamney at Canada Life,

Notes to editors:

  1. Canada Life benchmark annuity rates over time, £100,000 purchase price, 10-year guarantee, no health or lifestyle factors. 15-year gilt yields sourced from

Discover more

Find out more about considerations for annuity rates as part of a retirement income solution in our article here.


About Canada Life:

Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Great-West Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.  Great-West Lifeco has over 38 million customers worldwide and £1.532trillion assets under administration (as at 31 December 2022). 


Canada Life Limited began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown and maintained its position as the market leading provider of group insurance solutions.1 Canada Life acquired Retirement Advantage on 3rd January 2018 for an undisclosed sum. The acquisition added over 30,000 retirement income and equity release customers and more than £2 billion of assets under management including a £1.5 billion block of in-force annuities to Canada Life. 


Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance Limited and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland. 


Stonehaven UK Limited, registered in England and Wales no. 05487702. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. 

Stonehaven UK Limited is authorised and regulated by the Financial Conduct Authority. 


  1. Canada Life MI & Swiss Re, 2022