Annuity sales reached a 10-year high last year, according to figures from the industry on Wednesday, with insurers selling £7 billion of annuities, a 34% increase on the previous year.
Sales of pension annuity contracts jumped 24% to 89,600 in 2024, which the Association of British Insurers put down to more people looking to secure a reliable retirement income for life amid current economic and geopolitical uncertainty.
The £7 billion in annuities sold was the highest figure since George Osborne’s Budget in 2014 included 'pension freedom' measures that allowed anyone over 55 access to their pension, with no obligation to buy an annuity leading to a collapse in their sales in subsequent years.
But 2023 and 2024 have seen demand return, with the ABI saying the most common age to purchase an annuity remained 65, where 20% of all sales were made, while a growing number of annuity purchases were made after taking financial advice at 36% up from 29% in 2023.
But these levels are still well below the levels of annuity sales seen before 2014, when £10 billion was topped regularly.