UK retirement annuity sales rise 13.2% amid higher yields

Sales of retirement annuities in the United Kingdom have increased by 13.2%, reaching 100,144 purchases in the year ending March 31, according to data from the Financial Conduct Authority (FCA). This represents a rise from 88,430 purchases in the previous year.

Analysts suggest that rising gilt yields have pushed annuity rates significantly higher, making guaranteed incomes more attractive to retirees. For example, a 65-year-old with a £100,000 pension could potentially receive up to £8,061 per year from a single life annuity, which is over 60% higher than the £4,940 available five years ago.

Financial experts advise retirees to conduct thorough research, noting that annuities cannot be unwound once purchased. Options such as joint life annuities for spouses or annuitising pensions in stages are suggested to balance guaranteed income with financial flexibility.