Erratic inflation levels in recent years are continuing to drive strong levels of annuity sales with purchases of guaranteed income for life (GIFL) up five percentage points compared to four years ago, according to Just Group analysis.
Despite this, the financial services company's group communications director Stephen Lowe today (23 April) said extra care needs to be taken for those considering an annuity purchase. "The starting income will be lower, so they will need to pay out over several years to be likely to be worth inflation protection," he warned. Purchases of annuities accounted for 19% of all sales in the second half of 2022/23 while enhanced annuity sales also increased in proportion of total GIFL sales to 44%. This is compared to 35% four years ago, Just Group analysis of Financial Conduct Authority dat...
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