Ready for retirement? UK adults spend the least amount of time choosing a pension or annuity

Share Article

My Pension Expert comments on the recent study by Met Life into the length of time people take to buy an annuity

My Pension Expert
On average, 64% of working adults believe they will never be financially ready for retirement

As a society that continues to prosper and live longer, it is only so long before pension plans or annuities have to be considered. However, according to a recent study from MetLife, on average people spend only 7 days choosing a pension or annuity.

While it might not be the top of the agenda of many, UK adults spend more time choosing where to go on holiday, or what car insurance provider is best than choosing what is right for their retirement. It appears the short-term takes priority in today’s troubling economy, despite the majority of adults going to be retired for longer; pension plans and annuities are not the number 1 choice.

On average, 64% of working adults believe they will never be financially ready for retirement, raising several questions about whether the economical situation has damaged the confidence and pockets of many. Crucially, 57% of people believe the preparation made for their retirement has been postponed due to events since 2008, again, potentially due to the economy. If adults feel they are not prepared, this suggests that people will feel the need to work longer in order to support themselves and their family.

Everybody shops around when choosing car insurance, or when trying to get the best deal from an electricity supplier, but when only one week is spent on choosing a pension or annuity, it is doubtful that the best deal is found or enough research has been done.

In order to make sure retirement is a happy period, preparation and planning trumps in favour of a quick look because you’re in a rush to choose a plan.

Scott Mullen of My Pension Expert commented that people have a statutory right to shop around for their annuity, often referred to as the open market option. Just shopping around on average will improve income from an annuity by around 21%. If more time is spent researching options at retirement, retirees are more likely to qualify for the annuity that best suits their health and lifestyle. Annuity companies pay more income to people with heath problems and this could make a huge difference to the annuities offered.

Always seek financial advice and spend the time and effort used to choose a holiday on safeguarding the retirement period. Often enough, insurers will recommend certain plans that suit you and your circumstances so that everybody is a winner.

My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Samantha Green
Follow us on
Visit website