Legal & General annuity rates: L&G’s dated average and £100,000 table, how each income option moves the figure, and how its quotes work.
Legal & General publishes two kinds of annuity figure, a headline average and an example table, and both are dated below with the assumptions L&G prints beside them. Neither is an offer: your own quote is. L&G itself points people to Pension Wise, which it describes as a government service from MoneyHelper offering free, impartial pension guidance. If L&G’s figures leave questions about your own pot, health or dependants, an FCA-authorised adviser phones back when you send this page’s form, and the call costs nothing.
L&G’s published rates, and what sits behind them
The headline is in L&G’s guide What are the latest annuity rates? (page dated 12 October 2026): “as at 12 October 2026 our latest annuity rate is 7.36%”. Its footnote says this rests on L&G’s average rates on that date “and an average premium £70k with various benefits for an average age of 65”. It is an average across many purchases, so no single buyer should expect exactly that rate.
The same guide prints income for a pension pot of £100,000, “correct as at September 2026”. Every figure is for a lifetime annuity with a 10-year guaranteed minimum payment period, and the smoker row assumes ten cigarettes a day. Yearly income before tax, selected ages:
| L&G example, September 2026 | Age 55 | Age 65 | Age 75 |
|---|---|---|---|
| Single life, no health issues | £6,492 | £7,435 | £8,658 |
| Joint life, no health issues | £6,130 | £6,843 | £8,021 |
| Single life, smoker | £6,740 | £7,767 | £9,111 |
| Single life, no health issues, RPI-linked | £3,969 | £5,022 | £6,516 |
Three patterns stand out: income rises with age at purchase, the smoker earns more than the non-smoker, and inflation-linking costs the most at the start. L&G notes that joint life annuities “generally provide a lower starting income than single life annuities”. Its key features list what goes into a personal rate: age, postcode, market conditions and health or lifestyle. Why rates move over time is in where annuity rates are heading; what other pot sizes might buy is in annuity income by pot size.
The Pension Annuity: minimum, income choices and charges
Under the name Pension Annuity, L&G’s product page says “We only sell lifetime and enhanced annuities”; fixed-term plans are a different product (fixed-term annuity rates). The key features document (print code Q0056658 07/26) sets a minimum purchase of £10,000 “after taking any tax-free cash and, where applicable, deducting any agreed adviser charge”, and gives 55 as the earliest age in most cases (the rule is in taking your pension at 55).
The shape of the income is chosen at purchase. Payments can be monthly or yearly, in advance or in arrears; arrears pays more but the first payment comes at the end of the period. Income can stay level or rise each year by a fixed 1%, 2%, 3%, 4% or 5%, or with the Retail Prices Index, any of which lowers the starting amount (see inflation-linked annuity rates). Up to 25% of the pot can be taken tax-free, but only at the start. Income is taxed as earned income.
On cost, L&G builds its charges into the rate, “so there are no other charges to pay” (more in annuity fees). The annuity has no cash-in value and cannot be sold or transferred. If L&G could not meet its obligations, the document says a UK resident may be entitled to FSCS compensation, currently 100% of a valid claim; see if the provider goes bust.
Providing for someone after you die
With no death benefit added, payments stop when you die. Each option reduces your income, and the terms and conditions (DA2440 04/26) add that “some options cost more than others”.
- A dependant’s income of 50%, 67% or 100% of yours, paid for life to a named dependant such as a spouse, civil partner or financially dependent partner (joint life annuities).
- A guaranteed minimum payment period of one to 30 years, ending no later than age 100. Combined with a dependant’s income, the dependant’s payments begin when the period ends.
- Value protection of 25%, 50%, 75% or 100% of the purchase money, paid as a lump sum less any income already paid. It cannot be combined with either option above.
The key features illustrate value protection with a case study marked “Source: L&G, January 2026” and described as illustrative only: a 65-year-old man puts £100,000 into an annuity paying £6,657 a year with 50% protection. Dying after four years leaves his estate a lump sum; dying after nine leaves nothing, because the income already paid is more than the £50,000 protected. The trade-offs are compared in guarantee periods and value protection, and tax on what is left in pension death benefits.
Declaring health or smoking for enhanced terms
The key features say enhanced rates cover common lifestyle risks such as smoking or high blood pressure, as well as more serious conditions that may shorten life expectancy. They are asked for within the quote: L&G’s online quote has a section for these details, and its quotes guide says the medical questions are optional, though skipping them rules out an enhanced quote.
What you declare can be checked later. L&G may confirm medical or lifestyle answers with your doctor after income starts; if they do not match and it has been paying too much, it may cut payments, though not below its standard rate, and reclaim the overpayment. How large an uplift can be, and why it varies, is in enhanced annuity rates. Health questions, yours or a partner’s, are often where a second view helps: send the form here and an FCA-authorised adviser will ring to go through them alongside the rest of your income, at no cost.
Getting a quote, the cooling-off period, and comparing
An online quote needs a defined contribution pot of at least £10,000 after tax-free cash, an age between 54 years 9 months and 84 years 9 months, and a UK address. L&G will not quote online where your current provider offers a guaranteed annuity rate or similar benefit you could lose (see guaranteed annuity rates); phone and postal quotes are on 0800 048 2446, Monday to Friday, 9am to 5pm.
How long a quote holds is worded differently in two documents. The quotes guide (page dated 15 October 2026) says: “Your quote will be guaranteed for 15 days. If we receive your completed application within this period we’ll extend the guarantee for a further 30 days.” The key features (07/26) say: “To secure the rate used in your quote, we must receive your fully completed application and the money from your pension pot(s) by the dates confirmed in your quote.” The dates printed on a quote are therefore the operative ones.
After buying, you can cancel up to 30 days from L&G’s confirmation that the annuity has started. Cancelling does not return tax-free cash already paid or send the pot back to the old scheme: another retirement income product must be bought within six months of the cash being paid, or tax charges apply. After the 30 days, the choices are fixed.
The same key features add: “You can buy one with us or with another provider, and you may be able to improve your income by shopping around.” With your consent, L&G will say whether its quote is the highest, and its product page names a partner site, Annuity Ready. MoneyHelper runs a free comparison tool too; how to line quotes up like for like is in comparing annuity quotes.
Legal & General annuity questions, answered briefly
Can I get an enhanced annuity from L&G for health or lifestyle reasons?
Yes, if your health or lifestyle qualifies: its key features cover lifestyle risks such as smoking as well as serious conditions. You answer the health questions within the quote; leaving them out means a standard quote only.
What if my life expectancy is under a year?
L&G’s enhanced annuity guide says an annuity “may not be your best option” then, because you might be able to take all your pension as a tax-free lump sum. The rules are in pension death benefits.
Is Legal & General on the Financial Services Register?
Yes. Its key features give register number 117659, which can be checked on the FCA register. The key features document is linked from its Pension Annuity page.
Your next step
Once you hold an L&G quote, it helps to see it beside your State Pension, savings and any other pensions. An FCA-authorised adviser can do that over the phone; the enquiry form here requests the call and costs nothing. Whether an annuity suits you at all is weighed in is an annuity worth it, and the basics are in what a pension annuity is.
Sources, read 20 October 2026: Legal & General, Pension Annuity; What are the latest annuity rates? (12 October 2026); Enhanced annuities explained (21 April 2026); Getting an annuity quote online (15 October 2026); Key Features of the Pension Annuity (Q0056658 07/26); Terms and Conditions (DA2440 04/26).