One of the main reasons that people are considering annuities is because of the stability of a guaranteed income, the research highlights. This makes it easier to plan their finances while offering assurances in volatile market conditions. Improved rates (18%) add to the appeal of the product. However, despite their rising popularity, there is still a lack of awareness around annuities.
For instance, of the 20% of pre-retirees who wouldn’t consider an annuity, 16% believed the product offered a bad deal. An additional two out of five pre-retirees (44%) stated that they were interested in having a guaranteed income for the rest of their lives. However, only half of that number wanted or were evaluating an annuity, even though it was specifically designed to achieve this objective.
There is no hard and fast rule when it comes to deciding how to fund your retirement. It is important to be actively engaged in the process throughout your later life, as what may work well now may not be suitable for the future.
If you’re thinking about securing a guaranteed income through an annuity, it’s important to carefully consider your retirement goals, financial situation and options available to you. An annuity can provide a reliable source of income in retirement, but it may not be the best fit for everyone. Factors to consider include your age, health, life expectancy and other sources of retirement income.
 Research based on Legal & General’s own data. The YOY data was calculated in the 12 months ending in October 2022.
 Research was carried out online by Opinium Research amongst 2,003 UK adults aged 55+ who are still in work between 8–17 November2022.
Pre-retirees relates to those aged 55+ who are still in work. According to ONS statistics there are over 6,000,000 UK adults aged 55+ who still work. 16% of working adults aged 55+ who had not previously considered an annuity are now considering one because of interest rates and cost of living. This equates to 990,000 UK adults.
 According to ONS statistics there are over 6,000,000 UK adults aged 55+ who still work. 14% planned to buy an annuity which equates to 828,000 UK adults.
THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS PLAN HAS A PROTECTED PENSION AGE).
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.
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