Worry-free income for life

ANNUITY sales have surged to a 10-year high as more retirees take advantage of today’s higher interest rates to lock in a guaranteed income for life. So is this an option that you should consider today?

- By Harvey Jones

After years in the wilderness, these once-overlooked financial products are making a dramatic comeback.

In total 89,600 annuity contracts were sold in 2024 with a total value of £7billion, up 34% on the year before, according to figures from the Association of British Insurers.

Rising interest rates mean pensioners can now get a far higher income from their savings than just a few years ago. However, that could go into reverse if inflation eases and the Bank of England cuts interest rates.

Carolyn Jones, retirement director at Scottish Widows, said many retirees feel anxious about volatile stock markets: “An annuity can help take away the worry, and allow retirees to relax and enjoy their retirement.”