Pension drawdown glossary
A promise in some older pension policies to convert your pot into an annuity at a fixed rate, often far higher than rates available today. It is usually lost if you transfer or take the pot another way, and a GAR worth more than £30,000 generally means you must take regulated advice before transferring.
Source: FCA Handbook glossary: guaranteed annuity rate · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.