Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • November 2014
11

Annuity demand shows slight recovery

Open-access content Tuesday 4th November 2014 — updated 5.13pm, Wednesday 29th April 2020

Annuity demand is showing signs of stabilising with uptake growing by 14% in September, compared to June, according to a new report from financial services software supplier Iress.

Demand, however, is still subdued following the impact of the pension changes announced in the Budget, the firm said, noting that annuity sales were down by 47.1% on an annual basis.

Dave Miller, executive general manger of Iress's sourcing team, said: 'The Budget changes knocked the wind from the sails of annuity demand, but the slight recovery in the last quarter suggests the market may have bottomed out in the short term.

'April 2015 will provide a pivotal moment for demand when guidance becomes available. At this point, we should also see variety in both annuities and investment backed products. As people incorporate multiple and flexible products in their retirement, we believe guaranteed income will remain an important strut in long-term retirement planning.'

In addition, average incomes for annuitants have increased, the firm said. The average single life annuity secured an income of £3,810 per year in September, up 4.6% compared to August.

The increase in income has been driven by a growth in the average pension pot size, which is at its highest level since April 2012, hitting £72,134 in September.

In contrast, standard annuity rates fell to their lowest since July 2013. In September, they decreased to 5.28%, marginally down from August when they were at 5.29%.

This article appeared in our November 2014 issue of The Actuary.
Click here to view this issue
Filed in:
11
Topics:
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, 71-75 Shelton Street, London WC2H 9JQ. Tel: 020 7880 6200