Sales of drawdown contracts have more than doubled compared to the third quarter of last year while annuity purchases continue to fall, according to latest Association of British Insurers (ABI) statistics.
The size of pension pots used for drawdown investing has also fallen. The value of drawdown contracts sold by ABI members is about 50% that of the value of annuity sales, compared to 14% a year ago. Annuity sales were down 14% on the last quarter, and by 56% compared to the third quarter of 2013. It said the number of annuities sold had dropped further than the value of those annuities which, the ABI explained, suggested more people with smaller pension pots were taking cash or deferring their decision. The statistics showed while external annuities sales fell, internal annuity sal...
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