Pensions - Articles - Partnership comment on the launch of the ABI annuity example

 Andrew Megson, Managing Director of Retirement, comments on the publication of example annuity rates by the Association of British Insurers:

 “According to Partnership research, just 13% of consumers realised that they could get less income from their annuity if they chose to stay with their existing pension provider. Therefore, we welcome this move by the ABI as it clearly highlights the value of consumers taking the time to shop around and identify the best annuity for their individual circumstances.

 “In addition, our own analysis has revealed that more than 50% of 65 year olds have a health or lifestyle condition that could make them eligible for an enhanced annuity. However, in 2012, just 4% of people who take out a product with their existing pension provider choose this type of annuity.

 “This suggests that they may not be fully aware of their options and we hope that this initiative which is being launched as part of the ABI Retirement Choices Code will help to improve this situation. Ultimately, this is about helping consumers to make smart choices and we fully support this initiative.”