Why you should shop around using the Open Market

Following the major shake-up to the pension industry in April, just 41% of those approaching retirement are considering purchasing an annuity, according to figures from software provider, Selectpension.

As a result of the pension freedoms, more retirees are now turning to alternative, more flexible options in order to make more from their pension savings. However, regardless of the recent changes, some retirees still prefer the security offered through purchasing an annuity, which is a guaranteed income for life without any investment risk.

Are you one of them? If so, it is important to take note of the recent headlines highlighting the significant loss pensioner's face by failing to research their options!

According to recent analysis, pensioners have missed out on up to £5bn worth of annuity income by not shopping around for the best deals when they reach retirement. Unfortunately, around a third of retirees who purchased annuities are tying themselves into lower incomes for the rest of their lives by failing to do their research for the best deals, consequently missing out on an average rate of 5%.

It is understandable that due to the complexity of pensions, those looking to retire are overwhelmed with the increased choice now available. However, the shocking statistics above combined with the increased freedom makes it even more important for those looking to retire to research their options first before locking into a poor performing annuity.

This is where financial advice prior to retirement can make all the difference when looking to generate a desirable return from your pension savings.

So, before taking the plunge and pursuing the option of an annuity, speak to Retirement and Investment Solutions who can work with you to ensure you do not miss out on valuable retirement income.

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