My Pension Expert Reveals Loophole to Obtaining a Higher Income in Retirement
Retirees who shop around at retirement will usually increase their pension income for the rest of their life.
(PRWEB UK) 13 December 2012
Most retirees choose to purchase an annuity and to receive a regular income, which on paper is fairly straightforward. Annuities were first introduced as a way of curbing retirees spending their pension pots on holidays and Hobnobs and then having to rely on the state pension to survive.
Arguably, the system is flexible and good for retirees, yet annuity rates are making annuities unattractive to customers; nobody wants to lock in to an annuity in 2012 and only receive half of what they could have gotten before the recession.
A loophole to avoid such shoddy rates is to shop around for the best annuity and conduct research before buying. Ensure the best possible annuity rate is found and that the annuity matches the lifestyle.
MGM Advantage recently discovered that retirees could qualify for a higher income if they shopped around, and occasionally, providers do not disclose their rates at the fear of them appearing extremely low.
The annuity market is potentially lacking the honesty it needs to attract customers who would more than likely appreciate the transparency.
The ABI has suggested that each provider must publish their annuity rates in order to make it clearer and easier for retirees. While it is a long way from any improvement in annuity rates, this move could have a positive impact on the market and the customers.
My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.
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