Changes to inheritance tax rules next year are driving up interest in annuities, with demand quadrupling among the over-75s since 2024, according to Standard Life.
Figures from the pension provider show the proportion of quotes for customers aged over 75 has risen from 1.3% to 5.5% year-to-date in 2026, while the proportion of quotes over £1m has more than doubled over the same period.
The average annuity premium is up 14% year-on-year, increasing from around £91,000 in 2025 to over £100,000 so far in 2026.
Standard Life attributes these trends to a combination of attractive annuity rates and IHT planning. An estimated 10,500 estates are set to be brought into paying IHT due to the change in April next year, while around 38,500 estates face higher IHT bills.
Pete Cowell, head of annuities at Standard Life, said: “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.
“The forthcoming inclusion of pensions within inheritance tax is prompting many to revisit how they use their pension savings, and annuities are one of a number of options available.
“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.”
