According to a YouGov survey commissioned by the Institute and Faculty of Actuaries (IFoA) and released this week, two thirds of UK pensioners surveyed (68%) said that they would be unlikely to cash in their annuity for a lump sum.
- Respondents said being able to sell their annuity was a good idea in general, but not necessarily a good idea for themselves
- Younger age groups and the less financially secure reported being more likely to sell their annuity
- 55% reported they don’t know what they would do with the lump sum received were they to sell
Respondents would seek to receive on average 94% of the value of their annuity as a cash lump sum if they were to sell their policy (with value being defined as “the total of the expected future payments from their annuity”).