The average annuity value has soared 160% since 2021, according to Hargreaves Lansdown’s latest data.
In the first six months of 2025, the average fund used to purchase an annuity was £162,729, up from £62,301 in the first six months of 2021.
Hargreaves Lansdown said the figure suggests a wider range of people are taking advantage of attractive annuity rates.
The most recent figures from the HL annuity comparison service show a 65-year-old with a £100,000 pension can get up to £7,793 per year with a single life level annuity with a five-year guarantee.
This is close to all-time highs and significantly above the £4,943 available in August 2021.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The popularity of annuities continues to soar, with more and more people making use of them as part of their retirement planning.
“It’s easy to see why this is happening when you look at the market over the last few years. Annuity rates have boomed off the back of soaring interest rates and high gilt yields. Even recent decisions from the Bank of England to cut interest rates haven’t really put a dent in the incomes on offer.”
However, Morrissey said retirement savers need to do their research before buying an annuity, considering whether to buy a joint or single life annuity, the impact of inflation over the long term and whether to choose to annuitise in segments throughout retirement.
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