Pensioners Miss out Open Market Option

Pensioners ‘Miss out’ Open Market Option

Research from Just Retirement has revealed that Britain’s pensioners remain unaware of open market options, missing out on an estimated £500m a year.  Pensioners with small pension pots could be missing out on an uplift of up to 40 per cent for not utilising open market options.  Enhanced annuities give higher pension payments to pensions that have a condition that affect their life expectancy and the study estimates that about 40 per cent of Britons could be entitled to enhanced annuity.

David Cooper, marketing director for Just Retirement said, “This is a real wake-up call for all those involved in the retirement industry.  Customers should be given simple, clear and unequivocal information about how they can shop around for the best annuity rate”.

Our view

The Financial Services Authority is starting to ‘crack down’ on pension companies that do not make the pension annuity options clear to retiring people.

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