Just as interest rates on different high street savings accounts vary, so does the income that each life insurance company offers on their annuities. These can also fluctuate quite regularly as they depend on market conditions at the time of buying.

As well as the size of your pension fund or savings, and annuity rates at the time, other personal factors will be taken into account in determining how much income you will receive:
 

• Your sex
  The income from the same amount of money is higher for a man than for a woman, even if they are the same age because, on average, men don’t live as long as women.
• Your age
  The older you are, the higher your annuity payments are likely to be because it is expected that an older person will live for fewer years from now than a younger person.
• The options you choose to add to your annuity
  There are a range of options that can be added to your annuity, such as a spouse’s pension, and each of these extra features will affect the rate you receive.

For annuity rates, a life insurance company has to work out how long you are likely to live. Not surprisingly, the income will vary for each person according to their own circumstances. In order to get the best rates it is a good idea to shop around to make sure that you choose the most suitable product for you.