Millions risk missing the retirement they want because they overlook annuities.
YouGov research for National Annuity Day reveals women are most vulnerable.
LONDON, 21 October 2025 – New YouGov research for the UK’s first-ever National Annuity Day reveals a major gap between what people want in retirement—stability, comfort, and predictability—and their understanding of how annuities can provide it. The survey warns that this lack of knowledge could leave millions financially vulnerable, particularly women.
Although annuity sales rose 34% to £7bn in 2024[i],driven by high rates and interest in guaranteed income, most over-50s do not know how annuities work or how they could benefit.
National Annuity Day, an initiative created by Pension Potential, (part of Punter Southall), supported by Aviva, L&G, and Standard Life, aims to close this knowledge gap by educating people and supporting advisers and providers in reaching those who could benefit most.
[i] Another post-pension freedoms record for annuity sales | ABI
Key findings
The You Gov survey of 2,058 over 50s revealed a major gap between what people want in retirement and what they know about products that can deliver it.
The Annuity Blind Spot: 35% of over-50s want a “steady and stable” income but don’t recognise annuities as the way to achieve it.
The Emotional Disconnect: 52% of women (vs. 46% of men) prioritise “comfort and freedom,” yet few realise annuities can offer this security.
The Inflation Gap: Only 13% of women (compared to 26% of men) understand annuities can include inflation protection, highlighting a need for targeted advice to address the persistent gender pension gap and lower financial engagement.
Regional Disparity: Only 47% of Londoners prioritise joint-life cover for a surviving spouse, compared to 62% in the West Midlands.
Reliance on the State: 15% of women will rely solely on the state pension as they have no private savings, compared to 9% of men.
Why annuities matter most for women
Annuities are particularly suited to those seeking stability and lifelong financial security:
Guaranteed Freedom: Provides predictable income for everyday comfort and unexpected costs.
Longevity Protection: Women typically live longer, so annuities protect against outliving savings.
Low-Risk Stability: Offers peace of mind for those less comfortable with market volatility.
Inheritance Advantage: New inheritance tax rules from 2027 will make most defined contribution pensions taxable, but annuities can, in certain circumstances, remain exempt. Many over-50s, particularly women, are unaware of this advantage, missing an opportunity to protect family wealth.
Steve Butler, Managing Director of Pension Potential and founder of National Annuity Day, said: “The survey highlights a clear mismatch between what people want in retirement and what they understand about how to achieve it.
Many over 50s are seeking comfort, stability and predictability, exactly what annuities are designed to provide, but their understanding of these products is low. This lack of knowledge, particularly amongst women, risks people missing out on the financial security they want. National Annuity Day aims to close these knowledge gaps and help people make informed, confident decisions about their future.”
Six Steps to Build a Secure Retirement Income
National Annuity Day recommends the following:
Understand annuities: Learn how they provide guaranteed income for life, offering stability and peace of mind.
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- Explore options: Consider inflation protection, joint-life cover, and guarantee periods.
- Take a blended approach: Consider different ways products such as annuities can help support your approach to income in retirement, by providing a guaranteed income that can work alongside other income sources, such as property wealth, a state pension and a private or workplace pension.
- Check health eligibility: See if health-based rates or inheritance tax advantages apply.
- Shop around: Comparing providers can significantly boost income.
- Seek tailored advice: Especially important for women and those at risk of retirement poverty.
For more information and free educational resources, visit www.nationalannuityday.org.uk.
To download the whitepaper go to: The Annuity Blind Spot: Why UK Retirement Security is at Risk – Annuity Awareness Day
For media enquiries, interviews, or further information:
Kathryn Hughes
Kathryn@kayakpr.co.uk
Tel: 07801 823839
Notes to editors:
National Annuity Day is an initiative from Pension Potential, part of Punter Southall Group, supported by Aviva, L&G, and Standard Life.