In monetary terms, the FCA found that, on average, retirees who buy an annuity from their pension provider miss out on around Ā£71 per year. With the average length of retirement being around 19 years, that figure works out to meaning retirees are over Ā£1,300 worse off: a figure that could represent a very nice holiday for many, an investment on behalf of the grandchildren or one of several other very rewarding ways to spend a retirement income.
As part of their findings, the FCA have launched a more in-depth review of competition within the annuities marketplace to assess how it could be better organised with consumers in mind.
The message though is clear: shopping around when purchasing your annuity can really benefit you in your retirement years and, if you find the marketplace too complex to navigate on your own, a financial adviser may well be able to assist.
Taking account of your retirement goals and your current financial situation, weā€™ll look at your various options for living your desired lifestyle in retirement, including whether purchasing an annuity would be a suitable solution and, of course, then assessing which annuity would be best for you.
Weā€™ll also be keeping a close eye on the FCAā€™s further review of the market, to see how it will impact annuities in the future and how that would work for consumers.
