Annuities are making a comeback

Sales of annuities have fallen to their lowest level since the pensions freedom reforms of 2015 kicked in. But they may be about to stage a comeback.

At first sight, the latest data from the Financial Conduct Authority (FCA) suggests that the retirement annuity market is in freefall. Sales of annuities have fallen to their lowest level since the pensions freedom reforms of 2015 kicked in. But despite the headline figures, annuities may be about to stage a comeback.

It's not difficult to understand why annuities have become unpopular. Annuities offer those converting their pension savings into income a guaranteed pay-out for life, which sounds very appealing.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.