Bringing you live news and features since 2006 

Retirement

ABI initiative aims to help retirees get best annuity

RELATED TOPICS​

The Association of British Insurers is launching an initiative to help retiring pension investors get the best possible deal when they come to draw a retirement income.

 
The new Annuity Window is compulsory for all ABI members selling annuities to the public and will feature rates from 24 companies, including those which do not currently compete for annuity customers on the open market.
  
Tom McPhail, head of pensions research at Hargreaves Lansdown, says: “This is a welcome development. With the demise of guaranteed final salary pension schemes, millions of people now have to rely on their private savings to deliver a decent standard of living in retirement. It is highly unlikely that their existing pension company will offer them the best deal, so shopping around is absolutely vital. Pension savers have to make sure that they get the best possible annuity and even consider whether they want to buy an annuity at all.
 
“Over time, this Annuity Window will allow us to track the competitiveness of different pension companies’ annuity offerings and to identify those companies which consistently fail to come up to scratch. The ABI should be applauded for taking this initiative, however there is still more work to be done to make sure every defined contribution pension investor quickly and easily shops around for the best deal as a matter of course.
 
“The process which launches pension investors into their retirement still makes it too easy for savers to end up buying the wrong type of retirement income. More work still needs to be done to simplify the retirement process and to steer investors towards a comprehensive shopping-around solution.”
  
The difference between the best and worst standard annuity rates is typically around 12 per cent.
 
Some 56 per cent of annuity investors now qualify for some form of enhanced annuity when using a comprehensive shopping around service.
 
The five most common factors featuring in enhanced annuity searches are:
 
•             Hypertension
•             High cholesterol
•             Height and weight factors
•             Smoking
•             Diabetes
 
A smoker with high blood pressure and cholesterol readings could qualify for an increase of 47 per cent in their retirement income.

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by