- The average amount invested in retirement annuities has surpassed £80,000 for the first time, indicating a significant surge in their value.
- The total value of premiums paid into individual pension annuities reached £7.4 billion in 2025, marking a 4 per cent annual increase and the highest level since the 2014 pension freedoms.
- Sales of higher-value annuities saw substantial growth, with those over £250,000 rising by 31 per cent and those over £500,000 increasing by 54 per cent.
- This rise is attributed to individuals committing larger pension pots to secure lifelong income, with an 8 per cent annual increase in buyers aged 70 and over seeking stability.
- Experts note a “renaissance” in annuities, driven by improved rates, the inclusion of pensions in inheritance tax from April 2027 and a desire for guaranteed income in an unpredictable economic climate.
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