Annuity usage back on the decline despite 2023 hot market

Retirees using annuities has dropped from 19% last year to 17% this year

Isabel Baxter
clock • 1 min read

The proportion of retired UK adults using annuities has dropped in the last year, Interactive Investor’s Great British Retirement Survey 2023 has revealed.

Even though rates have increased and sales are rising nationally, the survey revealed that the proportion of retired respondents using annuities dropped from 19% last year to 17% this year. By contrast, it showed that pension drawdown rose from 35% to 48%. Despite high interest rates making annuities more attractive with sales increasing by 22% in the first quarter of 2023, the survey responses did not reflect this. Annuities offer certainty in income however due to low rates they have not been popular, the survey suggested. Read more: Drawdown vs annuities: How long will the 'h...

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 Pensions

FCA data reveals 'notable advice gap' in drawdown

FCA data reveals 'notable advice gap' in drawdown

Almost half of pots entering drawdown now do so without regulated advice

Sophia Panayi
clock 24 September 2026 • 2 min read
Action 'needed now' on salary sacrifice to minimise disruption

Action 'needed now' on salary sacrifice to minimise disruption

LCP says early preparation will help employers navigate the transition

Jonathan Stapleton
clock 24 September 2026 • 2 min read
Self-employed face retirement saving 'obstacle course'

Self-employed face retirement saving 'obstacle course'

‘Structural gap’ in participation between employees and self-employed

Martin Richmond
clock 22 September 2026 • 4 min read