As the UK population continues to live longer and pension freedoms have given savers more choice than ever, a worrying knowledge gap has emerged around one of the most reliable sources of retirement income – the annuity.
The problem: Widespread confusion and missed opportunities
Research by Standard Life highlights some stark findings about consumer understanding:
- “Almost half of people over 50 surveyed admit they do not know that annuities come in many forms.”
- “75% of UK adults do not know the total value of their pension pot.”
- “A quarter of over 50-year-olds incorrectly think that annuities give people without underlying health conditions the best rates.”
These figures matter. Despite “annuity sales rising 24% in 2024,” “the highest level in a decade at almost 90,000 purchases”, many retirees are still making life-changing financial decisions without adequate understanding or guidance.
The result: Poorer outcomes and lost income
Misunderstandings about flexibility, death benefits, or enhanced annuities mean many retirees may accept the first quote they receive, potentially losing thousands of pounds in lifetime income.
Others may overlook valuable features such as:
- Guaranteed payment periods to protect against early death.
- Value protection options that allow unused funds to pass to beneficiaries.
- Joint-life or inflation-linked annuities that maintain support for a spouse or preserve spending power.
This lack of awareness not only affects individuals’ financial security but also reduces confidence in pensions more broadly.
The industry response: National Annuity Day
To address these challenges, the first National Annuity Day will take place on 21st October 2025, led by Pension Potential (founded by Steve Butler, creator of National Pension Tracing Day) and supported by a wide range of industry partners.
The campaign’s goal is clear: to raise public understanding of annuities, encourage people to seek advice, and ultimately help them make more informed choices about how to turn their pension savings into sustainable income.
Confirmed supporters include:
Sponsors include many industry household names such as; Aviva, Legal & General, Standard Life and Pension Potential.
Supporting organisations alongside Craven Street Wealth include Canada Life, Just, Scottish Widows and LV=.
Together, we are uniting around a shared mission of improving consumer understanding, strengthening trust, and promoting transparency within retirement income planning.
Our role at Craven Street Wealth
We are proud to stand alongside these leading organisations as a supporter of National Annuity Day, helping to amplify an important conversation about how people can make better retirement decisions.
As Financial Planners, we see first-hand how complex the transition from saving to drawing income can be. Awareness campaigns like this play a vital role in helping people recognise the value of professional guidance, and the difference that informed decisions can make to long-term outcomes.
Building understanding together
Over the coming weeks, we will be sharing a short series of articles exploring topics such as:
- How annuities and pension fixed income plans work.
- The advantages and limitations of guaranteed income in retirement.
- How financial advice can help combine certainty and flexibility for better outcomes.
By working together as an industry, we can help ensure that every individual approaching retirement has the knowledge, confidence, and support they need to make their pension savings work for them.
National Annuity Day takes place on 21st October 2025
Visit www.nationalannuityday.org.uk to learn more about National Annuity Day.
Contact us on 0330 320 9280, email info@cravenstreetwealth.com or complete our online enquiry form to explore your retirement income options.
Sources:
Standard Life:https://www.standardlife.co.uk/about/press-releases/75-percent-of-uk-adults-dont-know-how-much-is-in-their-pension-pot
National Annuity Day: https://www.nationalannuityday.org.uk/
The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.
References to legislation and tax is based on our understanding of United Kingdom law and HM Revenue & Customs practice at the date of publication. These may be subject to change in the future. Tax rates and reliefs may be altered. The value of tax reliefs to the investor depends on their financial circumstances. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments.
You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.
Craven Street Financial Planning Limited is authorised and regulated by the Financial Conduct Authority (FCA). The FCA does not regulate tax advice.
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