Annuity sales soared 46% in 2023 to £5.2bn but only a minority of people took advice before buying one, according to ABI data out today.

Almost half of over 50s don’t know that annuities come in many forms and with various options, according to research from Standard Life, part of Phoenix Group.

In the last two years annuity rates have risen by more than half, according to Canada Life, giving a 65-year-old with a £100,000 annuity an extra £2,500 a year.

The top open market annuity could pay £662 more a year over a typical 20-year period than the worst-paying, according to Canada Life.