That’s right. This is the 500th news item I’ve compiled for this website over the past 6 months about pensions and annuities. Why, you might ask? Well, I’m actually quite passionate about the whole issue of retirement and retirement income. I have been for years.
I have known that retirees were missing out on higher annuity payments because of the lack of knowledge about the Open Market Option (OMO) for a long time now. And my thoughts were crystallized about three years ago when I met with three representatives of the Financial Sevices Authority (FSA). That meeting was about the principle of ‘Treating Customers Fairly’ (TCF).
Cutting a long story short, I asked them what they, the FSA, were going to do about TCF in respect of the OMO for retiring individuals. They said, ‘they would get around to it in a couple of years, but you’re in the industry. so why don’t you do something about it.’
That spurred me on to start developing the web based service you see now. Having said that, I could not have envisaged the turmoil we now see in financial markets around the world, and the effect all this is having on the value of pension funds for virtually everyone. I see now that there is real value in specialist independent financial advice for retirement planning; simply buying an annuity is not the answer any more.
In addition, I have taught myself a lot about the options available to retirees, so much so that I cannot imagine Joe Public actually knowing enough to make an informed decision on his own. I have learnt all about increased annuity rates being available through enhanced annuities and impaired life annuities for those with lifestyle and medical conditions and for those who smoke regularly.
I have discovered how poorly the Open Market Option is being communicated, but that it is improving. And I now know that income drawdown (unsecured pension) is perhaps a good option in uncertain times.
Here’s to the next 500! Cheers.
