Nest has partnered with annuity broker Retirement Line to give its million members direct access to annuities, reflecting a growing industry focus on providing guaranteed income in retirement.

The partnership expands retirement options for Nest’s more than 13 million members by giving them direct access to an annuity broker who can provide guidance, quotes and comparisons across multiple providers. Retirement Line will also check eligibility for enhanced annuities.

This support aims to enable members to maximise their guaranteed income, which can vary widely depending on the provider.

Nest member proposition director, Deborah Perkins, said: “For some of our members, many of whom were brought into pension saving by auto enrolment, an annuity could be an appealing retirement option.

"But there is a significant risk that comes with trying to navigate the annuity market without support to shop around for deals that are suitable for their needs.”

The move reflects a wider trend of providers broadening retirement options, particularly by offering greater access to annuities. In August, for example, Aviva introduced a guaranteed fixed-term annuity, providing secure income for three to 25 years without the need for a lifetime commitment.

The rise in providers offering annuities comes as more members seek a guaranteed income. Research from Hargreaves Lansdown shows that 39 per cent of people consider guaranteed income their top retirement priority.

This focus is driven by concerns over longevity and the need to plan a secure lifestyle in retirement, particularly as defined benefit (DB) pensions, which were once a key source of guaranteed income, are rapidly disappearing.

As a result, annuities are playing an increasingly important role and their popularity continues to grow, with the average annuity purchase size rising by more than 160 per cent since 2021, according to another report from Hargreaves Lansdown.

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