Fixed-Term Annuity Inquiries Jump 15% in First Half

In the first half of 2026, Standard Life noted a 15% rise in fixed-term annuity inquiries compared to the prior six months, reflecting retirees’ interest in balancing guaranteed income with future pension flexibility. This trend highlights their focus on securing income while keeping options open for later financial decisions.

A 65-year-old with a £100,000 pension pot could secure a guaranteed annual income of around £13,800 for five years, while retaining a £50,000 maturity value at the end of the term, according to Standard Life. This would provide an annual income above the full new State Pension of £12,548.

Fixed-term annuities provide a guaranteed income for an agreed period, after which retirees can decide how to use the maturity value. Pete Cowell, head of annuities at Standard Life, said: “Retirement increasingly looks less like a single event and more like a series of financial decisions made over many years.”

Standard Life’s latest Retirement Voice research found that people would ideally like to retire at an average age of 62.3 but do not expect to stop working until 67.6, a gap of 5.3 years. Fixed-term annuities could help some savers bridge the period between leaving work and receiving their State Pension.

Cowell advised retirees to consider how long they need the income for and what role the maturity value could play in future plans. He noted that a fixed-term annuity can sit alongside drawdown, savings, and the State Pension, helping people combine the reassurance of guaranteed income with the opportunity to review their plans later.

Cowell’s advice is for retirees to think carefully about their financial needs and goals before making a decision.