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
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • June 2015
06

UK annuity sales plunged by 43.3% 

Open-access content 12th June 2015

Sales of individual annuities in the UK fell by almost half from £12.4bn in 2013 to £7bn in 2014, according to a report.

Data company Timetric said the sharp decline of annuity sales was driven by new pension freedoms first introduced by the government in March 2014. 

"The 2014 budget changes have given retirees a wider range of options on how to access their defined contribution pension pots, paving the way for a first wave of innovative retirement income products," said the firm.

It added that in the run-up to April 2015, when the changes were implemented, several pension providers introduced new products with the aim to deliver a blend of security and flexibility to their customers. 

The firm said people with smaller pensions were expected to take advantage of the reforms and cash in their entire pots, while those with larger pots were more likely to withdraw the 25% tax-free lump sum upfront and use the remainder of the fund to provide them with an income. 

Timetric said providers and advisers were also expected to encourage savers to "mix and match" their options. 

Laura Balkarova, economist at Timetric, said annuity sales would continue to decline in 2015 and added that uncertainty remained over the future of annuity sales. 

"Uncertainty remains over the future level of sales as it is yet to be seen how investors will behave in the light of the new freedoms," she said.

"Annuities are expected to remain an option for savers looking for certainty of regular income for life. Third-way products, such as unit-linked guarantees, fixed-term and investment-linked annuities may become more relevant to savers looking for alternatives to conventional annuities."

This article appeared in our June 2015 issue of The Actuary.
Click here to view this issue
Filed in:
06
Topics:
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Longevity Actuary – Reinsurance

London (Central)
£100,000
Reference
118949

Senior Capital Actuary

London (Central)
£90000 - £110000 per annum + + bonus + benefits
Reference
118965

Capital Project Actuary

£500 - £850 per day
Reference
118964
See all jobs »
 
 
 
 

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
​
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

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200