Shop around for those pension annuities. Brits told to use the open market option for the best UK pension annuity rates. Those individuals reaching retirement age in the UK should look at all the retirement options available to them when it comes to turning their pension fund into an annuity. This message comes from leading enhanced annuity rates provider, MGM Advantage, which conducted recent research into the behaviour of Brits when making some higher priced purchases. Their research did come up with some interesting findings.
It found that 49% of those responding to their various questions said they shop around when considering a house, car, holiday, or furniture purchase, but only 11% use the open market option for best UK annuity rates for a pension annuity. The report also showed that a woman with £50,000 worth of pension fund savings who lives 20 years after her retirement could boost her annual income by an extra £11,000 if she compared rates from different annuity providers. Aston Goodey, director of sales at MGM Advantage, said that’s it’s a real concern that people are so comfortable haggling over the price of a car or new sofa, or something of that ilk, but so reluctant to shop around or negotiate over the rates on offer for a pension annuity, especially considering the long term importance of getting the best annuity rates.
