Skip to content
Glossary · Pensions

Annuity

Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.

Content updated:

Definition: An insurance product that converts a pension pot into a guaranteed income for life or for a fixed term.

Annuity rates depend on your age, health, location, and the options you add (single vs joint life, escalating vs level, guarantee periods). Enhanced annuities pay more if you have qualifying health conditions.

Related

More Pensions terms