Partnership welcomes annuity review and estimates that by not shopping around for the best annuity at retirement over the last decade people lost nearly £7bn in retirement income for life
Jim Boyd, director of corporate affairs at Partnership: “We welcome the review as currently a high proportion of pensioners do not receive the full benefit that they are entitled to due to their health. While we have yet to see whether enhanced annuities will be included, we welcome any review that has the potential to raise awareness of finding the most appropriate product given a person’s personal circumstances. Over 50% of people at age 65 have a health or lifestyle condition that would qualify them for an enhanced annuity. Our latest analysis has highlighted that the extra income that a typical 65-year old customer with a typical health condition would receive in their pension is 25% - and this is after taking into account the recent gender pricing changes. By not shopping around for the best annuity at retirement Partnership has estimated that over the last decade people lost nearly £7bn in retirement income for life”.
Aviva responded to the FSA review into annuities with Roger Marsden, head of at retirement marketing, saying:
"Aviva has been campaigning for a long time to bring greater transparency to the annuity market in order for customers to get the best annuity for their retirement. This review will provide an opportunity for other annuity providers to step up to the mark. It will encourage customers approaching retirement to shop around with the open market option and provide them with the necessary support and advice at the right cost, so they can get an annuity that provides fair value. Choosing an annuity is a once in a lifetime financial decision and customers need to have confidence that they are getting a fair deal for their individual circumstances."
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