Pete Cowell, Head of Annuities at Standard Life, comments on the FCA Retirement income market data 2024/25:
“The latest retirement income data highlights the variety of ways savers are accessing their money in a post-pension freedoms world. They reveal that a total of 961,575 pension pots were accessed for the first time during the year, with 88,430 annuities purchased, a 7.8% increase from 82,061 in 2023/24. This rise in annuity sales highlights the continued rebound in demand these products as consumers look for ways to secure income certainty in retirement – something important to 95% of over 50’s, according to our research.
Since the Autumn Budget in 2024, we’ve seen continued interest in annuities with Standard Life internal data showing that advised annuity sales reached 53% in July 2025, up from 28% in January 2025. This reflects both the ongoing strength of rates and the forthcoming introduction of IHT on pensions from 2027 and wealthier saver’s desire to draw an income now rather than leave money in their estate.
The FCA data shows that one in three are taking advice about their retirement income, and this will be especially important in the context of the IHT changes where individual circumstances mean the right approach is not always obvious. However, the 24% increase in the number of individuals with pot sizes over £100,000 making regular partial withdrawals of 8% or more from 2023/24 – 2024/25 raises concerns. Standard Life analysis has indicated annual withdrawals of 8% from a £100,000 pot could exhaust savings in as little as 12 years or as long as 28 years, depending on investment growth. While people may have other sources of income in retirement, monitoring the balance between withdrawals, investment returns, while ensuring essential income needs are met throughout retirement has never been more critical.”
