Types of pension annuity explained

Compare lifetime, joint-life, escalating, enhanced, fixed-term and investment-linked UK annuities and understand death-benefit options.

Last reviewed 4 September 2026

Frequently asked questions

What is the safest type of annuity?

A conventional lifetime annuity provides contractual lifetime income, but provider security, inflation and selected terms still matter.

Does an escalating annuity always beat a level one?

No. It starts lower and the break-even point depends on increases and lifespan.

Must I buy from my pension provider?

No. You normally have an open-market option and should compare, while checking existing guarantees first.

Official sources