Annuities- do you know how to get the best deal?
The Financial Services Consumer Panel (FSCP) has recently carried out some research into the issues that people face when they want to buy an annuity. An annuity is an income bought from a pension pot, and is paid to the buyer for the rest of their life.
The FSCP says that new annuity business is expected to at least double over the next few years because many people are reaching retirement age. However, it has found that there are several barriers which stop people getting the best deal.
- People not feeling comfortable with financial products
- Fear of product complexity
- Worrying about making an irreversible, expensive mistake
- Mistrust of professional advisers
- Not being able to find advice at an acceptable cost.
The FSCP has found that while more people - nearly 50% - are shopping around for the best deal (using the 'open market option'), some people give up as they are put off by complexity and 'information overload'.
If you are thinking about buying an annuity, you can read more about it on our website here.
You can also talk to us about any pension-related matter. While we cannot give financial advice (only an adviser authorised by the Financial Conduct Authority can do this), we can discuss your options with you and explain anything that you don't understand.
If you've got a question about this, please contact us, you can find out more here.