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Industry experts predict internet will dominate annuity product selection...

UK annuity providers and experts believe IFAs could be the fourth choice for retirees behind their employers and current investment provider.

The research commissioned by annuity administrators, Xafinity Paymaster, showed while providers believed for critical decisions such as annuity advice, IFAs should be involved, most retirees will in reality go to their existing provider followed by the internet to pick a pension.

The most popular channels for annuity advice at retirement were firstly, existing investment providers, secondly the internet, thirdly current employer or scheme trusteee, fourthly IFA and finally a bank.

UK annuity providers and experts believe IFAs could be the fourth choice for retirees behind their employers and current investment provider.

The research commissioned by annuity administrators, Xafinity Paymaster, showed while providers believed for critical decisions such as annuity advice, IFAs should be involved, most retirees will in reality go to their existing provider followed by the internet to pick a pension.

The most popular channels for annuity advice at retirement were firstly, existing investment providers, secondly the internet, thirdly current employer or scheme trusteee, fourthly IFA and finally a bank.

Around 96 per cent of the industry experts surveyed felt there would be a decrease in intermediary sales and an increase in execution-only business due to the implementation of retail distribution review (RDR) proposals, the low levels of annuity pots and the increased availability of internet-based information.

People are becoming more and more comfortable researching and buying major purchases via the internet, however I think it’s not only the fact that the purchase of an annuity is one of the most important financial decision people make, but by blindly using the internet for research people could be missing out on the many other retirement solutions that may work better for them.

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