The proportion of annuity quotes for customers aged over 75 has more than quadrupled since 2024, driven by more attractive rates, says Standard Life.
According to the retirement specialist, the proportion of quotes has risen from 1.3% in 2024 to 5.5% in 2026.
At the same time, there has been an increase in the number of higher-value cases, with the proportion of quotes over £1 million more than doubling over the same period, Standard Life said.
In addition to the combination of attractive annuity rates and the income certainty they offer, the firm said inheritance tax planning considerations are also coming into play ahead of the inclusion of pensions within IHT from April 2027.
With an estimated 10,500 estates set to be brought into paying IHT due to the change next year, and 38,500 estates facing higher IHT bills than under previous rules, advisers and their clients are looking for ways to reduce their potential tax liabilities.
Standard Life’s research shows that 39% of advisers expect annuities to become more popular due to the changes, with the trend reflected in the size of annuities Standard Life is writing. The average annuity premium is up 14% year-on-year, from around £91,000 in 2025 to over £100,000 so far in 2026.
Pete Cowell, head of annuities at Standard Life, said: “We’re seeing growing demand from older customers as well as an uplift in larger annuity cases, reflecting how retirement needs and planning behaviours are evolving. The forthcoming inclusion of pensions within inheritance tax is prompting many to revisit how they use their pension savings, and annuities are one of a number of options available.
“While multi-million-pound annuities are still a minority purchase, the market is experiencing strong demand due to the combination of income certainty and attractive rates. Rates are currently at historically strong levels, reaching post-pension freedoms highs in May.”
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