Falling down: What's behind the drop in annuity sales?

Why did the number of annuity contacts fall so much in 2013?

Jenna Towler
clock

Figures from the ABI revealed a 16% drop in annuity sales in 2013. Jenna Towler finds out what's behind the significant change

Procrastination is the thief of time, or so the saying goes. But it appears deferring making a decision on retirement income is becoming a far more common occurrence. In total, 353,000 annuities worth just under £12bn were sold in 2013, and the number of contracts sold on the open market was up. However, according to statistics from the Association of British Insurers (ABI), there was as a 16% fall in overall annuity sales year on year. So, what's behind the plunge? The ABI said its members – the providers themselves – reported many more clients were deferring making their retirement ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Retirees flock to annuities as sales rise almost 40% year-on-year

Retirees flock to annuities as sales rise almost 40% year-on-year

Annuity sales up 38.7% to 80,061 in 2023/24

Jenna Brown
clock 26 September 2024 • 2 min read
Annuity comparison demand among advisers continues to rise

Annuity comparison demand among advisers continues to rise

Popularity of annuities returned as rates increased

Jenna Brown
clock 24 September 2024 • 2 min read
Advisers back annuities as sales continue to rise in H1

Advisers back annuities as sales continue to rise in H1

Annuity sales reach £3.6bn in H1 2024, ABI figures show

Jasmine Urquhart
clock 21 August 2024 • 2 min read