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

Why annuities are back on advisers' agendas

Why annuities are back on advisers' agendas

'Another factor bringing annuities back into focus is the evolving tax landscape'

Ahmed Bawa
clock 24 March 2026 • 4 min read
Just guaranteed income for life sales soar amid adviser demand

Just guaranteed income for life sales soar amid adviser demand

Reports IFRS loss before tax of £118m for 2025

Jen Frost
clock 27 February 2026 • 2 min read
Record-breaking year for annuities as larger pots drive £7.4bn sales

Record-breaking year for annuities as larger pots drive £7.4bn sales

ABI figures for 2025 at highest level since 2014 pensions freedom bombshell

Jenna Brown
clock 12 February 2026 • 3 min read