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Initial sales rose to their highest level in a decade in 2024, as economic uncertainty pushed people towards products and guaranteed income currents.

Insurance companies sold 7 billion pounds in pensions last year, according to the British Insurance Companies Association, an increase of 34 percent over 2023 and the highest number since George Osborne.Pension freedoms“The budget in 2014. The number of contracts sold by 24 percent increased last year to 89,600, which is the highest level in 10 years-but only a quarter of 2013 remains.

“With the ongoing global disturbances and economic uncertainty, there is an increasing desire for people looking for stability in retirement,” said Laurena Shah, Managing Director of Retail Retirement at Legal & General.

Sales decreased in 2014 after the president of Usborn removed long -term restrictions that prompted most of the retirees to pensions.

The number of contracts sold to its lowest level ever decreased in less than 50,000 in 2020, a decrease from about 350,000 in 2013.

But the interest rates that belong to a long -term decrease in the number of people with generous specific interest pensions have brought savers to pensions over the past two years.

Despite the height, installments purchases still make up for a small percentage of ways in which people reach pension wealth. They were the most popular among people with retirement utensils of 50,000 and 250,000 pounds.

“People think it is an option between installments or input withdrawal – he is not either or you can integrate both,” said Helen Morrisi, head of retirement analysis at Hargrves Lansdawon.

She said that the so -called mixed solutions may attract a person who intends to “retract work, and perhaps work part -time.” She said that retirees “can” move in the slides, take money smaller than their pension and use “to secure some guaranteed income from the annual installments.” By leaving the rest invested, they will also have the opportunity to develop their pension utensils.

Moressy explained that annual pensions have become increasingly attractive to the older retirees. Someone will get a pension of 100,000 pounds at the age of 65, at an annual income of 6,309 pounds, one life, with a five -year guarantee.

The individual who has taken the same installments at the age of 75 will have 9,368 pounds annually, according to the data of the “best installments” for Hargrayaves Lansdown for this week.

Moressy said: “If you remain invested in the withdrawal of income at the age of 75, your portfolio will have to work hard from the point of view of investment to generate these returns.”

Rob Yuil, head of the long -term savings policy, pointed out that more people “benefit from professional advice before buying annual installments, and explore the market to find the best [option]”.

Thirty -six percent of buyers got a financial advice before purchasing pensions, up from 29 percent in 2023, according to ABI. Seven out of 10 performed annual operations from a different provider to the accompanying that they got with pensions.

Some advisers have been cautious about encouraging their customers to buy pensions. “The problem with installments is that once it is purchased, you cannot modify it,” said Daniel Hug, the financial plan at RBC Brewin Dolphin. “The highest prices are good at first, but once you are built in additional features they become less attractive.”

Unlike retirement utensils, pensions can usually be passed as inheritance. Pensions shared common pensions for husbands allowing income after the death of one person in marriage, but the offered prices are much lower than single pensions.

However, pension service providers say there are basic structural changes that attract people to products – exceeding high interest rates. Beit Cuylon, head of pensions in standard life, said:

Initial rates depend on a number of factors, including long -term prospects for basis rates. Maurice from Hargreaves Lansdown said that although it is expected that “interest rates will decline during the next year or so, I cannot imagine that we return to its low low prices. [of the 2010s] Any time soon. ”