Annuity comparison quotes hit the highest level in a decade in 2023, according to data from iPipeline.

The life insurance and pensions technology provider reported a 60.1 per cent year-on-year increase in quotes for annuities last year.

It has been tracking the number of annuity comparisons produced on its portal since 2013 and reported a “significant trend” in 2023.

The level of increase surpassed previous demand in 2013, when the number of quotes rose by 20.2 per cent.

The third and fourth quarters of 2023 saw more comparisons run on iPipeline’s portal than for any other quarters over the past decade.

“Interest in annuities has been increasing steadily alongside interest rates,” commented iPipeline product strategy director, Paul Yates.

“Now, with inflation falling and interest rates expected to follow, advisers are looking to lock in competitive rates sooner rather than later.

“Bearing in mind the complexity and shifting regulatory landscape and the options available across annuities and drawdown, proper financial planning advice is more important than ever.”

Yates noted that this year could be one of “huge change” in the pensions and retirement sector, as reforms could unlock “significant capital” and providers need to be ready for the “swell of activity” this could generate.

“We know from experience that the legacy technology in pensions and annuities is a market drag - providers need to get their systems in order as a matter of urgency or risk losing out,” he added.

Financial Life Planning director, Kate Shaw, commented: “The pensions landscape is already complex and, with new regulations, a possible change in government coming and uncertainty around interest rates this year, it will make the need for financial planning more important than ever.

“Annuities are playing an important role in retirement planning again after having a low profile for years - but how and when to utilise them is a question that should go through an adviser to assess on a case-by-case basis.

“Making sure that medical histories are properly considered alongside dependent and index linking needs means each case is different, and advice can make all the difference to the outcome.”

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