Pensions

A recent Daily Mail article highlighted how ruthless insurers are ripping off hundreds of thousands of retiring private sector workers by up to £1 billion a year.The problem stems from the fact that two-thirds of people are unaware that they do not have to cash in their pension and buy their annuity from their current pension provider

Britain’s leading pensions authority says those who cash in their hard-earned pension pot are being systematically cheated by a ‘murky’ industry.

To obtain your pension income, you have to buy an annuity which converts your pension savings into a lifetime income. Each year, around 450,000 people use their accrued pension pot to buy an annuity from their existing pension provider (usually an insurance company). These people are unaware that they are entitled to a valuable benefit called: 

“ The Open Market Option ”

This Option is vital for you to secure the highest pension income from your pension pot as it allows you to “shop around” to find the highest pension income from the whole of the market rather than just the pension provider holding your pension savings. There is a huge difference between the rates offered by one annuity provider to another yet most people just take the first offer from their current pension provider as they believe they have to. This adds up to pension providers saving up to £500million to £1billion a year in a ‘heavily manipulated’ market because their loyal policyholders accept their annuities that pay far less than they could secure by “shopping around”.

You can often obtain a much better deal from another provider. For example, the same Daily Mail article also described how “a healthy 65-year-old man with a pot of £100,000 could receive a pension of £5,000 a year from his insurer. But he could potentially increase that to £5,800 if he shopped around”. The article also quoted a “true story of a 61-year-old man with a £140,000 pension pot who was told he had two or three years to live. His insurance company offered him an annuity of £3,600 a year. But when he looked elsewhere, he was offered £26,000 a year plus a lump sum of £37,000”.

The size of the annuity is crucial because it is a “one-off”, irreversible decision that sets the size of your pension payments for life.  Insurers are failing to explain that people can get a better deal elsewhere especially those with certain medical conditions, lifestyle issues such as smokers or even their post code where they live..

I Saved Money has Linked up with ‘ Annuity Line ‘ who offer live real time quotations online and by telephone from all the UK’s leading and most competitive annuity providers allowing you to compare the highest rates available and your annuity options. They are one of the UK’s largest and longest established annuity brokers and “shop around” for their clients by providing a non advised annuity broking service that gives you detailed information enabling you to make your own informed decision. They specialise in annuities alone and arrange thousands of annuities a year at no direct cost to their clients. You can speak to one of their experienced  Annuity Consultants today who will be pleased to answer any questions you have and help you walk through the process step by step. 

Don’t be one of the many thousands every year who lose out.  Make sure your hard earned Pension Pot delivers the highest level of income for you!!!!

 

Get Your Free Quote

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