The proportion of annuity quotes for over-75s has more than quadrupled since 2024, alongside an increase in higher-value quotes over £1 million, Standard Life has reported.

The proportion of quotes for customers aged over 75 rose from 1.3 per cent to 5.5 per cent year-to-date in 2026.

Meanwhile, the proportion of quotes over £1 million more than doubled over the same period.

According to the provider, the trend has been driven by a combination of attractive annuity prices and the income certainty the product offers, while the inclusion of pensions within inheritance tax (IHT) from April 2027 is also a driver of customer behaviour.

Standard Life explained that the forthcoming IHT pension changes have prompted advisers and wealthier clients to rethink retirement strategies, as more estates are expected to face higher tax liabilities.

In response, annuities are being considered as a potential option to reduce estate values while providing a guaranteed income.

Standard Life research found that 39 per cent of financial advisers expected annuity demand to increase because of the changes, with this trend mirrored in rising case sizes, as the average annuity premium increased 14 per cent year-on-year from around £91,000 in 2025 to over £100,000 so far in 2026.

The findings reflect “how retirement needs and planning behaviours are evolving,” said Standard Life head of annuities, Pete Cowell.

He added: “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.”

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