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Another record year for annuities as Legal & General tops £2bn in sales
Legal & General Retail’s annuity sales have reached an all-time high of £2bn so far this year, indicating more people place value on having certainty over their finances.
3 Dec 2024
- Demand continues as customers seek financial stability and peace of mind
- Legal & General achieves record-breaking annuity sales of £2bn
- Sales are up 55% compared to the same week in 2023
This milestone is reflective of a further resurgence in annuity sales across the market, with the Association of British Insurers reporting a 50 per cent rise in sales in the first half of 2024, compared to the same period the year before. L&G sales are up 55% compared to the same week in 2023.
While improved rates on annuities have been one driver of this growing demand, there’s also increasing awareness of the other benefits a guaranteed income can provide. A recent study from Legal & General and the Happiness Research Institute, an independent Danish think tank, looked at the link between annuities and happiness. The study found that retirees with an annuity score more positively across multiple wellbeing measures than those who don’t1.
The advantages for annuity holders go beyond just wellbeing considerations and include benefits around managing finances in retirement, with annuity-holders more likely to report the highest level of financial confidence compared to those without one (24% versus 21%).
Lorna Shah, Managing Director, Retail Retirement: “Annuities continue to be a great choice for many, providing income security in later life. Improved rates, which mean people can get more for their money, have played a key role in driving interest, but this isn’t the only factor. Together with the Happiness Research Institute we’ve shown how the certainty of an annuity enables a happier retirement, removing the fear of outliving savings and providing retirees with a sense of financial security that eases stress and uncertainty.“The good news is that retirees have options. It’s not an either-or decision. Combining the guaranteed income of an annuity with other sources, such as income from investments or drawdown, can provide even more flexibility, ensuring that essential expenses are covered, while offering the opportunity to grow other assets."
References
1Analyses were conducted by the Happiness Research Institute on a population-weighted sample of 3,000 UK retirees that responded to a cross-sectional online survey conducted by Opinium in April 2024. The happiest retirees were defined as those with a life satisfaction score greater than the sample median.
Further information
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.1 trillion in total assets under management (as at HY24) of which c.40% (c.£0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 3 December 2024, Legal & General has a market capitalisation of £13.1 billion.
Legal & General Retail helps create brighter financial futures for all our customers. The division covers the savings, protection and retirement needs of our c.14 million retail policyholders and workplace members.
In 2023, we had total individual annuity sales of £1,431 million, and issued £299 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 5.2 million members, while our Protection businesses gave peace of mind to several million direct, group and US customers, taking in £1,991 million of UK and $1,584 million of US gross written premiums.