03 September 2008
Virgin Money has warned that savers may lose up to £10,000
when converting their pension pots into annuities. Figures from
Virgin Money suggest that a 65 year old man with a pension fund of
£100,000 could expect payments of about £7,740 a year,
but he could miss out on £1,935 (based on a three month
delay) if he became one of the Financial Service Authorities cited
60% of annuity customers facing delays when transferring funds.
The annual retirement income would fall by £500 if annuity
rates dropped during the delay period, meaning a fall of
£10,000 over a 20-year period.
