The proportion of quotes for customers aged over 75 has more than quadrupled since 2024 at Standard Life, rising from 1.3 per cent to 5.5 per cent year-to-date in 2026.
At the same time, Standard Life has seen an increase in the number of higher value cases, with the proportion of quotes over £1m more than doubling over the same period.
According to the firm, this trend is being driven by a combination of attractive annuity rates and the income certainty they offer, but Standard Life believes inheritance tax planning considerations are also playing an increasingly important role.
The inclusion of pensions within IHT from April 2027 is believed to have radically changed financial planning for wealthier individuals, including through an increase in purchasing annuities.
Standard Life research has shown that 39 per cent of financial advisers expect annuities to become more popular due to the changes, and this trend is reflected in the size of annuities Standard Life is writing. The average annuity premium is up 14 per cent year-on-year, increasing from around £91,000 in 2025 to over £100,000 so far in 2026.
Pete Cowell, head of annuities at Standard Life, says: “We’re seeing growing demand from older customers as well as an uplift in larger annuity cases, reflecting how retirement needs and planning behaviours are evolving.
“While multi-million-pound annuities are still a minority purchase, the market is experiencing strong demand due to the combination of income certainty and attractive rates. Rates are currently at historically strong levels, reaching post-pension freedoms highs in May.”
People’s Pension has also partnered with Retirement Line to launch a free annuity guidance service for members aged over 55 considering guaranteed retirement income options.