As more people look to secure a reliable retirement income for life, sales of pension annuity contracts jumped 24% in 2024 to 89,600, surpassing last year’s total and reaching a new ten-year high.
The latest pension annuity data from the Association of British Insurers (ABI) shows that total annuities sales reached £7 billion, a 34% increase on 2023.
Six providers offer annuities to new customers, and in 2024 seven in 10 (69%) of annuity buyers switched – taking an annuity from a different provider to the one they held their pension savings with – compared to 64% in 2023.
The most common age to purchase an annuity continues to be aged 65, making up 20% of all sales. The ABI’s data also shows that more annuity purchases occurred after taking financial advice in 2024, with 36% of buyers taking advice beforehand compared to 29% in 2023.
The proportion of joint life annuities, that provide for a dependant, enhanced annuities based on health and lifestyle underwriting, and escalating annuities, that keep pace with inflation, also all increased.
Rob Yuille, ABI Head of Long-Term Savings Policy, said:
“These figures demonstrate just how valuable annuities are in the mix of retirement products. Buoyed by improved rates, the appeal of a guaranteed income for life can help people achieve financial security in retirement.
“It’s also encouraging to see that more people are taking advantage of professional advice before purchasing an annuity, and are exploring the market to find the best income and a type of pension that is tailored for them.”
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