Overview
- ABI data show total individual annuity premiums rose 4% in 2025 to £7.4bn, the highest level since the 2014 pension freedoms.
- High‑value transactions surged, with purchases over £250,000 up 31% and those above £500,000 up 54% year on year.
- The typical annuity reached about £84,000 as overall policy numbers dipped slightly, indicating larger pots are being converted into guaranteed income.
- Buyers aged 70 and over increased by around 8%, and demand grew for escalating and inflation‑linked products to protect income over time.
- Industry voices cite stronger rates and the forthcoming inclusion of pensions in inheritance tax from April 2027, with advisers noting interest in 'flex then fix' strategies and careful use of surplus‑income gifting under strict HMRC rules.