21 November 2013

Should I ... Source my own pension income or take advice?

How you obtain an annuity from your pension plan and from which company has been a growing battle in recent years. The "Open Market Option" has been touted as the answer, and all pension companies should now be making it clear that you don't have to buy an annuity from them, but are entitled to search for a better deal on the open market.

That advice seems to be getting through. BUT, along with the fact that clients now have to pay a direct fee to an adviser rather paying it by commission, it means that more people than ever are doing their own thing in finding an annuity. In 2012 32% of annuity sales were people doing it direct, while in 2013 that has gone up to 52%.

That's an improvement, but what if an annuity is not the best thing for you in the first place? There's no doubt in my mind that some will still be losing out and will have a poorer retirement than they might have done, had they consulted a financial adviser.

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