Mind the gap, annuitants told

A widening gap between the best and worst annuity rates available has highlighted the importance of consumers shopping around for the best deal, according to Investment Life & Pensions Moneyfacts. The difference between the best and worst standard open market rates currently range between 11% and 17%, depending on age and sex, for a £10K purchase price, while the gap rises to between 16% and 22% at the £50K price point.  

The uplift available from an enhanced rate as a result of either health or lifestyle considerations could also radically improve the income payable. "The variance between the best and worst rates plus the wider introduction of postcoded annuities and the growth in enhanced options has produced a more complex annuity market than we have seen previously," said Suzanne Greener, deputy editor of Investment Life & Pensions Moneyfacts. "As a result, pensioners could lose out significantly if they don't take the time to research the best deal for their individual circumstances or take advantage of an adviser's expertise."  

Source: eMoneyfacts 02 Feb 2009

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