Record numbers shop around for best annuity rates as open market purchases hit 62% – Just Group
In 2024/25, 62% of annuities were bought on the open market, up from 59% last year and 53% in 2022/23.
More people are shopping around for the best rates on Guaranteed Income for Life (GIfL) solutions, also known as annuities, according to analysis by Just Group.
In 2024/25, 62% of annuities were bought on the open market, up from 59% last year and 53% in 2022/23.
Just 38% of annuities were bought from existing providers, down from 41% the previous year and 58% in 2021/22.
Among those with pensions over £50,000, 68% switched providers.
Staying with an existing provider means customers could miss out on better rates elsewhere.
The difference between the highest and lowest paying annuity for a healthy 65-year-old with a £50,000 pension is about £362 a year, or £9,050 over a 25-year retirement.
Nearly half of buyers received enhanced rates after sharing health and lifestyle details.
Stephen Lowe, group communications director at Just Group, said: “It is great to see that more customers are shopping around themselves or using advisers and brokers to compare rates.
Related
Most employees stop pension saving when moving to self-employment, analysis finds
WEALTH at work launches Retirement Guidance Service to support trustees and employers
Half of adults with health conditions face pension poverty, Scottish Widows finds
Just Group secures £160m buy-in for Hartwells Pension Plan
One in eight young adults say pensions are “pointless” as retirement feels out of reach – People’s Pension
Gen X faces retirement shortfall despite higher buy-to-let ownership – Rathbones
Just Group completes £220m buy-in to secure Church of Scotland pension benefits
63% of adults fear running out of money in retirement, LV= finds
Just Group completes £61.8m buy-in for Scandinavian Airlines System Limited
15 million people in the UK are undersaving for retirement, warns Pensions Commission
Disrupted work patterns lead to lower pension savings, DWP finds