Annuity sales starting to increase
The number of retirement annuities being bought by pension savers has increased for the first time in three years, according to the Association of British Insurers.
Some £1.17 billion worth of annuity sales took place in the third quarter of 2015, compared with £990 million worth of sales during the previous quarter, marking the first quarterly increase in annuity sales since 2012.
The new pension freedoms introduced in April mean that pension savers are no longer required to buy an annuity, which gives a fixed income, when they come to retire.
Annuities have been controversial in recent years due to disappointing rates and concerns that people were not shopping around for the best deal.