Delays in transferring pension savings into the best UK annuity rates and a higher retirement income is proving costly to retirees. The Origo Options pensions industry initiative has helped to reduce the average time it takes to transfer a hard earned pension fund into an annuity income to 11 calendar days, down from the previous high average of 31 days. However, Virgin Money has recently calculated that a delay of just seven days in transferring a pension fund of £100,000 could cost retirees dear in terms of lost annuity income.
A 65 year old man receiving an annuity income of around £6,600 from his annuity could miss out on about £125, while a woman could lose out on around £120. However, with the worst offenders taking as long as 51 days to complete the transaction, the ensuing ten week delay could cost men around £1,270 and a woman £1,200. Buying an annuity is a once in a lifetime financial decision which retirees have to literally live with, comments Virgin Money’s Grant Bather. He adds that the annuity income is fixed for life and there are no second chances, and, if a person misses out on the highest UK annuity rates then the loss is compounded.
It is crucially important that retirees shop around to find the best annuity rates from across the whole of the market, rather than simply choosing the annuity on offer from their current pension provider. Why not start your annuity research today? Give us a call and see just how much extra retirement income we can find for you.
