Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • July 2014
07

Retirees 'regret' annuity choice, survey reveals

Open-access content 15th July 2014

More than two-thirds of retired people who accepted the annuities offered to them by their pension providers now regret it and would do things differently, a Just Retirement survey has revealed.

In a poll of 1,000 people aged 55 and over, the pension provider found that, of those who would do things differently, 71% would seek professional advice, 43% would shop around themselves and 14% would leave the pension invested.

Stephen Lowe, Just Retirement's group external affairs and customer insight director, said: 'At the point of making their decisions, three in ten were under the impression they were compelled to buy from their existing provider which is far too many.

'Just as worryingly are the reasons given for the inertia shown by those who said they did know they could shop around but chose not to. Four in ten said they trusted the existing pension provider. And three in ten said it was the simplest or easiest option.'

Lowe said customers often 'don't know what they don't know', which makes them heavily reliant on information from their own pension provider.

'The government has promised "Guaranteed Guidance" next year for all pension savers heading into retirement,' he continued.

'To deliver better outcomes to more people there needs to be just as much effort on controlling the information and communication between providers and their clients to ensure people are not being led into solutions that are not in their own best interests as has happened in the past.'

In May, MPs argued that the provision of ‘Guaranteed Guidance’ and greater flexibilities offered by the government's pension changes were likely trigger a greater requirement for further advice and financial innovation.

 

This article appeared in our July 2014 issue of The Actuary.
Click here to view this issue
Filed in:
07
Topics:
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Actuarial Analyst - Reinsurance Pricing

£40000 - £50000 per annum + bonus and excellent benefits
Reference
118841

Underwriting Assistant - Property (Lloyd's)

London (Central)
£30000 - £40000 per annum + benefits
Reference
118840

Reinsurance Pricing Lead

London (Central)
Negotiable
Reference
118839
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200