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Iress: Advised annuity sales down 40%

Data from Iress’ portal shows advised annuity sales annuities dropped by over 40 per cent year-on-year for the month of June.

The software firm says analysis of more than 150,000 advised annuity applications shows sales of single life annuities were down 43.8 per cent in June 2014 compared to the same month last year.

Despite the drop-off in sales, average rates are improving.

In June, the average single life annuity sale saw retirees buy an annual income of £3,552, compared to £2,942 for June 2013.

Meanwhile, the average pot size for annuitants was £65,232 in June, its highest in two years, according to Iress’ data.

Iress executive manager Dave Miller says: “Those planning to retire have seen a seismic shift since March, and the dust is far from settled. Annuities demand has been hit in the short-term, as consumers understandably hold fire until they have received guidance or see the extent of their options in April. 

“While demand for annuities may not hit previous heights, the protection they offer against increasing longevity ensures they will remain relevant to financing retirement, especially as innovation accelerates in the space.

“In this context, it is a step in the right direction that income is climbing, with rates inching up and pot sizes reaching their largest in two years.”

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