Thousands of pounds in retirement income being missed

This article from Easier Finance highlights the importance of shopping around and talking to experts, given the current uncertainty in the annuities market.

"The latest results from the MGM Advantage Annuity Index reveal that the difference between the income paid on top and bottom quartile enhanced annuities is continuing to grow. It shows that over an average retirement, men could now be £10,129 worse off and women £11,351 worse off if they chose a bottom quartile enhanced annuity for their £50,000 pension pot.

The Index also shows that annuity rates have fallen by nearly 3% since June 2009.

This continual decline in rates was apparent during each subsequent financial quarter and highlights the importance of shopping around for the best possible annuity rate.

Between April and June 2010, the difference between the top and bottom rates paid by enhanced annuities for men was 16.78%, up from 12.5% between January and March 2010. For women, the difference increased almost 4% to 17.01% from 13.06%. For the first five years of retirement, men buying a bottom quartile enhanced annuity could be £2,152 worse- off and women £2,837.  Worryingly, both men and women would now receive over £600 less in the first five years of retirement than they would have done just three months ago.

Craig Fazzini-Jones, Director at MGM Advantage comments, “There are significant differences between the best and worst annuity rates for conventional and enhanced annuities, making it more crucial than ever to shop around for the best deals.”"

Just call, write or use the online service and we’ll introduce you, in various ways, including through the website and by phone, to Independent Financial Advisers (IFA).

Read the full article here.