Overview
- Standard Life’s mid-2026 figures show the share of over-75s requesting annuity quotes rose from about 1.3% in 2024 to 5.5%, and requests for £1m-plus annuities have more than doubled.
- Advisers report sharply higher client interest driven by stronger annuity rates and the April 2027 rule that will make most unused pension pots part of a person’s estate for inheritance-tax purposes.
- Planners say one common strategy is using annuity income to make regular gifts that can qualify as tax-exempt ‘surplus income’ when strict conditions are met, which can reduce future IHT bills.
- Market conditions are helping the shift: annuity payouts for older buyers are often approaching high single digits and the average annuity premium paid rose about 14% year-on-year into H1 2026.
- Public understanding remains limited—many over-50s say they do not know what an annuity is—so advisers warn outcomes will depend on tailored financial advice and careful application of complex tax rules.