Higher interest rates have led to a 24% increase in annuity sales in the UK. This is prompting providers to offer improved deals to customers who are shopping around.
The total number of sales reached 89,600 in 2024, with sales worth £7 billion. According to the latest data published by the Association of British Insurers, this figure represents a 34% increase on 2023.
Sales are up for both joint life annuities and escalating annuities. They provide a guaranteed income until death, and recent activity on bond markers indicates that providers are still offering seductive deals on these financial products.
Before investing though, there are different options to consider. One is getting an ‘enhanced’ rate if you delay buying an annuity until you are older and/or in poorer health. You could buy an annuity either in tandem or later on as an alternative source of income.
Healthier investors are usually advised to go for single life ‘level’ annuities, not indexed to inflation – although the impact of inflationary pressures also needs to be taken into account. It’s also worth noting that anyone buying a single life annuity will leave nothing for their spouse if they die first, so it is well worth planning their future expenses before reaching a decision.
With more and more people shopping around for the best annuity, this reflects a realisation that not researching the market could leave you thousands of pounds worse off in retirement.
If you are looking for financial advice in Cheshire and need guidance on annuities, get in touch with local financial planning specialist Hartey Wealth Management today to discuss suitable options.
