One of the UK’s major annuity comparison services has reported a 60% surge in adviser annuity quotes in 2023 compared to 2022.

Annuity quotes last year hit the highest levels in a decade, according to iPipeline which claims to provide 25% of all adviser annuity quotes.

The fintech said there was a significant increase in demand for annuity quotes last year. iPipeline has been tracking the number of annuity comparisons produced on its portal since 2013.

Quotes for annuities were up 60.1% in 2023 compared to the previous year. This level also surpasses the previous spike, which occurred in 2013 when quotes increased by 20.2%,

iPipeline also reported that Q3 and Q4 2023 saw the highest number of comparisons compared to any other quarters in the previous decade.

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

“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.”

Mr Yates predicted that pension reforms could unlock significant capital and providers must be ready for the “swell of activity” this could generate. He said the Consumer Duty could also drive greater use of annuities.

iPipeline launched the Building a Better Retirement report with Retirement Review in November 2023. It discovered that among 40 to 66 year-old UK savers, the average target pot is £223,503, while on average the total value of personal pension pots across all schemes is £167,891. Nearly one-quarter of this group (23%), however, estimates they have less than £50,000 while 37% have no target at all.