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...

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