The number of escalating guaranteed income for life (GIfL) products purchased between 2023/24 and 2024/25 rose by 17 per cent year-on-year, from 14,898 to 17,427, Just Group analysis has revealed.

Analysis of the Financial Conduct Authority’s (FCA) retirement income market data 2024/25 showed that escalating GIfL products now account for a fifth (20 per cent) of total sales, up 6 percentage points from 2018/19 (14 per cent).

Just Group explained that choosing an escalating GIfL solution protects pensioners from inflation, as it starts at a lower level but rises over time, either through a link to inflation or at a pre-agreed percentage increase.

The FCA’s data also includes GIfL products that utilise health or lifestyle information, such as smoking status, to offer better rates and higher income than products that don’t use this information.

Just Group's analysis of this found that the proportion of enhanced GIfL solutions has also grown “noticeably” in recent years, with 42,339 sold in 2024/25 – an 18 per cent increase from 2023/24, when 35,826 were purchased.

Overall, GIfL solutions now account for almost half (48 per cent in 2024/25) of total sales, representing a 10 percentage point increase compared to 2018/19 (38 per cent).

Just Group group communications director, Stephen Lowe, said the figures suggest that customers are making more informed decisions.

He said: “It is good to see more customers tailoring GIfL products to suit their personal circumstances, often securing a higher level of income in the process.”

Lowe added that Just Group’s analysis indicates around two-thirds of GIfL customers may qualify for enhanced rates, suggesting a gradual movement toward a situation where most customers are securing the best rate available to them.

“The shockwaves of the inflation spike following the pandemic may be influencing customers’ decisions when purchasing GIfL, with a notable uptick in escalating plans being purchased,” he said.

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