New Wealth and Wellbeing research from LV= found a growing consumer interest in annuities as a source of secure retirement income. But awareness of annuities remains low among consumers and needs education.
The LV= research showed that 43% of UK adults surveyed said certainty was the most important factor when planning their retirement income, rising to over 50% among those aged 60 and over. While flexibility (31%) and growth (27%) remain relevant, the data suggested a clear preference for stability.
Annuities, whether fixed term or lifetime, offer guaranteed income during retirement. A fixed term annuity provides income for a set period, while a lifetime annuity pays out for the rest of a person’s life.
The Wealth and Wellbeing research found that despite the benefits annuities can offer, only one in ten Baby Boomers (aged 61–70) have considered purchasing a lifetime annuity, and 8% of Generation X (aged 45–60). Moreover, just 6% of both generations have considered purchasing a fixed term annuity. This highlights a potential knowledge gap among those closest to or already in retirement, LV= said.
The research also found that more than two in five (44%) UK adults feel positively about using part of their pension to buy an annuity. Among those who have received financial advice, this figure more than doubled compared to those who haven’t spoken to an adviser (56% vs 26%, respectively), reinforcing the value of professional guidance.
While only 38% of UK adults say they’ve considered options for their retirement income, both lifetime (13%) and fixed term annuities (9%) emerged as notable choices, LV= reported, adding that although lifetime annuities remain more familiar, fixed term annuities are gaining traction due to their flexibility and ability to be tailored to individual retirement needs. Depending on the provider, some fixed term annuities also offer built-in guarantees, enhancing their appeal for those seeking both control and security.
“Annuities are regaining relevance as retirees seek certainty in an unpredictable market, said Gwen Haggo, Savings and Retirement Sales Director.
“Our research shows that guaranteed income is increasingly valued, and annuities, whether fixed term or lifetime, can offer that stability. Yet, awareness remains low, which is why education and advice are more important than ever in helping people make confident, informed retirement decisions. Advisers are uniquely positioned to deliver this guidance and bridge the knowledge gap.
“Our top priority is to help people live financially confident lives. That’s why we were proud to support National Annuity Day (21 October 2025), to raise awareness of the security and peace of mind a steady retirement income can provide.”
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