Demand for annuity comparison quotes hits new high in 2024

Pensions technology provider iPipeline has reported a significant rise in demand for annuities among financial advisers.

In the first half of 2024, annuity quotes increased by 12% compared to the same period in 2023, marking the highest demand since iPipeline began tracking in 2013.

This follows a record 60% year-on-year rise in adviser annuity comparisons on its platform in 2023.

The company’s November 2023 ‘Building a Better Retirement’ report, produced with Retirement Review, revealed that the average UK saver aged 40 to 66 targets a pension pot of £223,503, yet many fall short.

The average total value of personal pension pots is £167,891, with 23% of savers holding less than £50,000, and 37% having no savings target at all.

The findings highlight the growing importance of annuities in retirement planning.

Greg Neall, chartered financial planner at Wake up your Wealth, said: “This clearly shows a continued return to the annuity market by advisers, which comes as no surprise as annuity rates for those in their mid to late sixties are comparable to sustainable drawdown rates.

“If this higher interest rate environment persists, I believe the rates of annuity quotes will continue to increase, particularly for those investors over 70 who have deferred taking their pension pots or have used a drawdown to transition towards a secure income later.”

Paul Yates, product strategy director at iPipeline, said: “We’ve seen advisers are searching for annuities during a time of higher interest rates. We assume that now rates have started to fall and may continue to do so, these annuity numbers will start to slowly reduce.

“It will be interesting to see what happens in the second half of the year (especially with the current market volatility levels). We are unlikely to see a return to interest rates under 1% again, so annuities should remain a key part of an adviser’s retirement toolkit, especially for older retirees who need income guarantees.

“We would also expect to see growth as the number of people with drawdown pots increases and as the age profile of holders grows.”

If you're in your mid to late sixties and would like an annuity quote, get in touch with Annuity Central today. Our financial planners can guide you through the right annuity options to get what you need out of retirement, and sort out the purchase of the annuity for you.

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