Annuity sales up by more than 13% for 2025-26
The Financial Conduct Authority (FCA) has published its latest data on what the UK’s retirees are choosing to do with their pension savings. It is clear that annuities are increasingly popular, with sales of the guaranteed income product up by 13.2%.
The FCA report that 100,144 retirement annuities were arranged in the year ending 31 March 2026, up from 88,430 in the previous year.
An annuity turns money saved into a defined contribution pension scheme into guaranteed income for a life or a fixed term, free from investment risk. Annuity rates have risen markedly in recent years, meaning those choosing this option can lock in considerably more income than was possible a few years ago.
For example, the highest annuity rates for a healthy 65-year-old available through Retirement Line on 1 September 2026 was 8.03%. That contrasts sharply with rates of around 4.5% that were available at the start of 2022.
“Transformed annuity rates”
Quilter’s retirement specialist Adam Cole said: “The FCA’s latest retirement income data paints a picture of retirees becoming increasingly pragmatic about how they generate income in later life.
“Perhaps the clearest example is the continued resurgence in annuity purchases. Higher interest rates and gilt yields have transformed annuity rates, allowing retirees to secure significantly higher levels of guaranteed income than was possible just a few years ago.
“Against a backdrop of market volatility, inflation uncertainty and concerns about making retirement savings last, it is perhaps unsurprising that more people are choosing to lock in a secure income stream for life rather than take on all the investment and longevity risk themselves.”
How much annuity income can you expect?
Annuity providers always personalise your best annuity rate to your individual circumstances. That’s why we invite you to talk to one of our Annuity Specialists so that they can get you personalised quotes from the UK’s leading annuity providers.
For a free, no-obligation annuity quote, you can call us on 0800 652 1316, request a call back, or email us at info@retirementline.co.uk.
