Pension annuity sales hit record as average pot exceeds £80,000

Annuity sales grew by 4% to £7.4bn last year, according to industry data. Photograph: Alamy/PA

The government’s “inheritance tax raid” on pensions has helped drive sales of retirement annuities to new highs.

Industry data this week revealed they enjoyed a “record-breaking” 2025, with sales growing by 4% to £7.4bn and the average amount invested in an annuity surpassing £80,000 for the first time.