Risk averse pre-retirees rule out annuities due to 'vague understanding'

Just one in ten UK adults aged over 50 are willing to risk their money

Sahar Nazir
clock • 1 min read

An estimated 19 million UK adults aged 50+ may be overlooking annuities, according to research released today (28 June) by the Financial Services Compensation Scheme.

More than one-third (37%) of respondents are unwilling to take risks with their money saying they are worried about not having enough money to last the duration of their retirement, while more than half (58%) said they have a vague or no understanding of annuities. Just under a third (28%) have an annuity or would consider buying one. One in ten (10%) are willing to take risks with their money. Nearly one-third of people said they are uncertain if annuities are right for them (29%), while 26% said they are fearful of their provider going bust (26%). A quarter of respondents do not und...

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 Your profession

Advisers on cash ISA allowance cut: Move welcome but education concerns persist

Advisers on cash ISA allowance cut: Move welcome but education concerns persist

Limit cut from £20,000 to £12,000 confirmed in Autumn Budget today

Sahar Nazir
clock 27 November 2025 • 3 min read
Reeves promises to not 'return back to austerity' in pre-Budget message

Reeves promises to not 'return back to austerity' in pre-Budget message

'Biggest drive for growth in a generation'

Michael Nelson
clock 26 November 2025 • 1 min read
Nearly half of advised HNW clients unaware of CGT allowance

Nearly half of advised HNW clients unaware of CGT allowance

Charles Stanley finds

Sahar Nazir
clock 25 November 2025 • 2 min read