Annuities guide: what they are, types, how to buy them

Confused about annuities? You're not alone. But if you're about to retire, it's an important financial concept to grasp.

Man approaching state pension age looks at laptop while sitting at desk.
Annuity sales hit record levels in 2024.
(Image credit: Yoshiyoshi Hirokawa via Getty Images)

Rates for annuities have been steadily increasing in recent years, with annuity sales hitting record levels in 2024, according to the Association of British Insurers (ABI).

As more people looked to secure a reliable retirement income for life, sales of pension annuity contracts jumped 24% in 2024 to 89,600, surpassing the total for 2023 and reaching a new ten-year high.

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Harriet Meyer

Harriet Meyer is passionate about helping people manage their finances. She's won national awards for 'cutting through the jargon' around the more complex areas of pensions and investments. Harriet is a regulator contributor to a range of national newspapers, magazines, and websites. She started her career as part of the Daily Telegraph's Money team, and has since edited The Observer newspaper's 'Cash' section and worked as a producer for BBC Radio Five Live's Wake up to Money. Outside of work, she loves exploring the world and volunteers for Crisis. 

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