More than half (55 per cent) of annuity buyers in the past year have shopped around for the best terms and switched from their existing provider, Origo data has revealed.

Analysis of its pensions transfer data revealed that over half of policyholders are aware of the importance of shopping around to get the best annuity deal rather than sticking with their current pension providers.

This signalled an improvement on previous years, with data from Financial Conduct Authority (FCA) revealing that 50 per cent of pension savers who bought annuities in the four years up to mid-2022 did not compare deals from different providers.

Origo chief executive, Anthony Rafferty, said this was hopefully indicative of a trend where "even more people will look to the wider market to ensure the rate they are being offered is the best for them."

He also pointed to data from the FCA earlier this year, which revealed purchases of annuities had risen by 38.7 per cent between the 2022/23 and 2023/24 tax years. A total of 82,061 annuities were sold in 2023/24.

Rafferty added: "Responsibility for ensuring sufficient income in retirement now firmly sits on individuals' shoulders. Once an annuity is purchased, it cannot be reversed, so getting the best deal at the time of purchase is essential.

"It may be that their current provider offers the best rate for their circumstances, but it is more important than ever that people know they have the option to look around and are exercising that option to switch should it be better value for them to do so."

---