Helen Morrissey, head of retirement analysis, Hargreaves Lansdown:
“Soaring incomes are driving retirees back to annuities, with gilt yields helping to push annuity rates skyward over the past few years. HL’s annuity search portal shows a 65-year-old with £100,000 pension can get up to £8,061 per year from a single life annuity with a five-year guarantee. This is more than 60% up on the £4,940 available five years ago and has been tempting people in search of a level of guaranteed income back to the market.
Today’s FCA data confirms it, with sales growing 13.2% in 2025-26. Income drawdown and taking pensions as cash remain the most popular ways of accessing a pension, but these figures show annuities continue to play an important role in the retirement income market.
It’s vital to do your research before you purchase an annuity though. An annuity can’t be unwound, so think about what type of annuity best meets your circumstances. If you’re married, you may want to consider a joint life annuity that keeps paying an income to your spouse when you die. Opting for the higher income offered by a single life annuity could see them left with nothing.
You also don’t have to put all your eggs in one basket and annuitise your entire pension at once. Annuitising in stages lets you secure income as your needs evolve while some flexibility in drawdown.”
Notes to Editors
HL is the UK’s largest investment and savings platform for private investors and more than 2.2 million clients trust us with £205 billion (as of June 2026).
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