Having saved so hard for retirement this is especially cruel and it demonstrates why it is essential to seek professional advice first.
Doncaster, Yorkshire (PRWEB UK) 2 October 2013
New findings from Money Mail have revealed that someone signs up to an inferior pension every seven minutes each day. This startling statistic comes four months after the introduction of a new code which contained reforms designed to encourage more retirees to shop around for their pensions, enabling them to gain access to superior deals. However, tens of thousands of retirees still missed out on the best rates.
Shopping around and seeking professional advice is an essential process in the annuity market. Rates can differ by as much as 20% between insurers and if a customer is eligible through health reasons to apply for an enhanced annuity, then it can be as much as 40%. As many as six out of ten people could be eligible for an enhanced annuity and leaked figures between April and July have shown that of the 43,255 people who took professional advice, 19,341 took an enhanced pay-out. This is in stark contrast to the 47,251 who stuck with their insurer, of which only 2,969 got an enhanced deal. The reality of these figures being that many pensioners are missing out on what could amass to tens of thousands of pounds over a typical retirement.
Scott Mullen from My Pension Expert said "What makes these findings all the more troubling is that there is no reversing the annuity decision once it is taken. If a retiree realises they've made a mistake after signing up to an annuity, there is nothing that can be done to boost their income. Having saved so hard for retirement this is especially cruel and it demonstrates why it is essential to seek professional advice first."
My Pension Expert is a company of Diploma Qualified Financial Advisors specialising in options at retirement.