Why Annuities Are Back in Focus — and What Financial Planning Firms Can Do With This Opportunity

In a landscape of market volatility, interest-rate uncertainty and evolving retiree behaviour, guaranteed income propositions are receiving renewed attention. Recent research from LV= reveals that nearly 43% of UK adults say certainty is the most important factor when planning their retirement income — rising to over 50% for those aged 60 and above. At the same time, both lifetime annuities and fixed-term annuities are beginning to re-enter the conversation as credible options for many clients.

Major Retirement & Investment Gaps: Strategic Marketing Opportunities for Financial Planners

Date: 15 September 2025
Author: Aspina Marketing Insights

Recent findings from Hargreaves Lansdown’s Savings and Resilience Barometer reveal a sobering reality: only 43% of UK households are currently saving enough for an adequate retirement. This substantial gap presents significant opportunities for financial planners to expand their client base, establish authority, and develop stronger professional referral partnerships.

Understanding the Scale of the Challenge

Retirement Adequacy Crisis

According to the research, just 43% of households are on track for “an appropriate retirement.” This figure combines the Pension Commission’s target replacement rate (approximately two-thirds of pre-retirement income) with a basic living wage pension benchmark, representing a more realistic assessment than previous metrics.

Reaching the Advice Gap Middle: A Smart Move for Financial Planners

The UK faces a retirement crisis of unprecedented scale. With 15 million people at risk of financial hardship in later life, financial advisers have both a social responsibility and a significant business opportunity to address this growing challenge.

The Scale of the Crisis: Understanding the Numbers

Recent research reveals alarming statistics about retirement preparedness in the UK. According to the Financial Conduct Authority, 10% of adults are not saving anything at all, whilst 21% have less than £1,000 in savings. More concerning still, almost a quarter of the population—13 million people—find themselves in a fragile financial state, struggling with debt and everyday expenses.