Legal & General Annuities

Legal & General Annuities

May 29, 2012 05:41 ET

Legal & General's Golden Rules for Maximising Annuity Rates and Income

LONDON, UNITED KINGDOM--(Marketwire - May 29, 2012) - Only 1 in 8 are taking advantage of the extra retirement income available from an enhanced annuity.

Buying a pension annuity is an important one-off decision, so it's vital that people take advantage of extra income if it's available to them when converting their pension fund savings into an income for life. The only way for annuity customers to ensure they're not missing out on extra income is by shopping around to compare annuity rates and income offers.

Tim Gosden, Head of Annuity Product Development at Legal & General, believes that more needs to be done by providers and financial advisers to help customers maximise their annuity income:

"It's estimated that up to half of annuity customers could qualify for enhanced annuities. But market statistics suggest that around a third of customers still buy their annuity from their pension provider without even looking at what's on offer from specialist providers. The specialists tend to offer the best annuity rates including enhanced rates and income where certain health risks or medical conditions apply.

Independent financial advice can help people get the most out of their pension annuity but for those that don't want advice or perhaps can't get advice, here are some golden rules for a better retirement income:

  • Don't buy your annuity from your pension provider without first shopping around to see if there's a better deal; it's not as difficult as it sounds. Visit the Money Advice Service's website to get a quick idea of what's on offer and then call some of the providers to get quotes.

  • Be sure to tell providers about your health risks and medical conditions when getting quotes as this could result in them offering you more income. If you have any health issues, make sure you get a quote from at least one provider that offers enhanced annuity rates."

Tim added; "Pension providers need to ensure that they're giving people plenty of information and notice about their retirement income choices. And annuity customers need to get into the routine of shopping around and being open about their health to help them secure the best annuity income."

For a guaranteed annuity quote and to get an instant decision on extra income based on smoking, weight, blood pressure, cholesterol or Type 2 diabetes, call Legal & General's Annuity Solutions team on 0800 048 1603. We may record and monitor calls.

Contact Information