A financial advisory firm has reported lifetime annuity sales only account for 25% of its total business written since the Budget reforms – a fall of 22%.

My Pension Expert said its research would appear to show that the pension landscape has already shifted significantly.
The firm reported: "Prior to the Budget the majority of retirees elected to purchase a lifetime annuity which accounted for 47% of My Pension Expert's total business written.
"Post Budget this figure has fallen by 25% as products which offer greater flexibility such as Fixed-Term Annuities and Income Drawdown have seen a surge in popularity.
"Fixed-Term Annuities now account for a total of 57% of all business written which is a 19% increase on what it was pre-Budget.
"Income Drawdown has also seen a similar increase in business written of 16%, jumping from a mere 1% before the Budget to 17% currently. On the flip side Invested Annuities which are another example of an inflexible annuity, have fallen by 9%, from 13% to 4%."
The total percentage of people selecting Fixed-Term Annuities, Income Drawdown and Flexible Drawdown was 75%, the company stated.

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This meant that three in four people are opting for flexible retirement options versus the more rigid traditional options. Prior to the Budget this figure was 40%, almost half of what it is now.
Scott Mullen director at My Pension Expert said: "With annuity rates at low levels and the introduction of the new pension freedoms it's easy to understand why retirees are opting for the more flexible options at retirement so that they can take their time with major decisions and re-evaluate their needs well into their retired life."
He said drawdown products are set to become even more popular thanks to the recent changes in death benefits, because they can now be passed to any named beneficiary on death. If the policy holder dies before the age of 75, the remaining pension pot can be transferred completely tax free.

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