The essential annuity checklist for a guaranteed income in retirement

L&G reveals the essential annuity checklist for a guaranteed income in retirement

· L&G has launched a guide to help over 55s better understand their annuity options

· The guide includes a user-friendly, downloadable checklist to help those nearing retirement prepare before requesting a quote, easing the process.

The total value of premiums paid into individual pension annuities reached £7.4 billion in 2025, up 4% year-on-year, according to the latest data from the ABI1. This is the highest annual level since pension freedoms were announced in 2014, demonstrating the important role annuities continue to play in retirement planning.

To help people better understand all their options and navigate the process with confidence, L&G has created a downloadable annuity quote checklist and annuity quote guide.

Research highlights retirement wellbeing benefits

Beyond providing a guaranteed income, annuities may also have a wider impact on how people experience retirement. Research from L&G and the Happiness Research Institute found retirees with an annuity are more likely to report lower stress levels (51%) and higher financial confidence (24% versus 21% among those without one2).

The study of 3,000 UK retirees, which explored the relationship between retirement happiness and annuities, uncovered what motivates people to choose an annuity.

Almost a quarter (23%) said the appeal of receiving a regular income for life was a key reason for choosing one. Meanwhile: 16% said an annuity makes budgeting easier and 13% said it provides greater control over their finances.

The different types of guaranteed retirement income L&G provide include:

· A Pension Annuity: Keeps you secure with payments for a lifetime.

· Fixed Term Retirement Plans: Choose an income for a set period allowing for flexibility or a bridging income. You can also opt to receive a cash sum at the end.

More details on Pension Annuity options including enhanced, joint and escalating annuities can be found on L&G’s website. Fixed Term Annuity details can be found here.

Researching options before requesting an annuity quote is essential to ensure an understanding of what’s available and what suits you best. It also helps prepare questions for a financial adviser and choose the right plan for your circumstances.

What the checklist covers

Legal & General Group Plc 10th July 2026 L&G has created an easy access downloadable annuity quote checklist to encourage over 55s to be more prepared when requesting an annuity quote, ensuring they have all the correct information to hand when the time comes.

The checklist asks potential annuitants:

· Pension information: How much of your pension pot you would like to use, whether there are penalties for withdrawing money, and whether there are any implications when changing providers.

· Your medical history: When buying a Pension Annuity, you will need to highlight your height, weight, how much alcohol you consume, whether you smoke and if you have any conditions. Some medical conditions could lead to receiving a higher income called an enhanced annuity.

· Your product preferences: How you would like your annuity to work for example, do you want a lifetime or fixed term plan?

A quote with L&G will provide a better understanding of retirement income and how to plan and even highlight if there is a better price elsewhere via Annuity Ready, our lifetime annuity comparison service. An annuity income will depend on factors such as age, health and what the current annuity rates are, making them completely unique to the individual.

How to get an annuity quote

Getting an annuity quote with L&G is straightforward and can be done online using a laptop, tablet, or smartphone.

1. Register: Fill out all your details and activate your account.

2. Get financial advice: Although optional, getting financial advice and guidance will help locate the right plan for you and make it feel less daunting. L&G has an advice service or Pension Wise provides free, impartial guidance for over 50s.

3. Answer questions: Fill out all the questions regarding your existing pensions to create a quote tailored to your needs and requests.

4. Receive your pension annuity quote: If you know what you want and have your paperwork to hand, you can receive your quote in just 15 minutes, and you will also have the option to download it as a PDF to refer to later.

Mike Batty, Managing Director – Home Finance, Product & Strategy Director- Retail Retirement, L&G says: “We know that the stability of a guaranteed income has a real impact on wellbeing, giving retirees the confidence and peace of mind to enjoy their retirement. While the annuity market is growing, navigating the options can feel complex. Our guide and checklist are designed to cut through that complexity and make the process more straightforward.

“We want to empower people to see how an annuity can form the secure foundation of a flexible, blended retirement plan. By covering essential costs, it allows other investments to provide for more of life’s wants. Ultimately, our goal is to give people the clarity and confidence to build the future that’s right for them.”

Find out more information here.

-ENDS-

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

Notes to editors 1 Link to ABI data: https://www.abi.org.uk/news/news-articles/2026/2/2026-annuity-data/

2 Study by Legal & General and the Happiness Research Institute, an independent Danish think tank focusing on wellbeing, happiness and quality of life (November 2024)

The post The essential annuity checklist for a guaranteed income in retirement appeared first on USNewsRank.