NEW SERVICE FROM THE ANNUITY CLEARING HOUSE OFFERS BENEFITS TO ‘CATCH 22’ RETIREES
June 2010

“Millions of retirees who can’t afford advice are those in most need”

Depressed annuity rates and increased life expectancy are flashing red indicators that the hundreds of thousands reaching retirement this year need to consider when choosing the annuity they are going to buy to provide their retirement income.

Peter Quinton, chairman of the Annuity Clearing House, believes that the majority of retirees – those with modest pension pots totalling £50,000 or less – face a ‘Catch 22’ situation that discourages them from making the best of what they have.

“The size of these pots makes it uneconomic to seek full advice both for the retiree and their adviser, yet these are the retirees for whom an increased retirement income is generally hugely needed and appreciated,” he said.

“The launch of the Annuity Clearing House solves this conundrum.”

Although the average size of pension funds is rising, the vast majority remain far too small to make full advice economic. He said that nearly 90% of annuity contracts bought last year were under £50,000, their average size being just £15,000.

He said that retirement is a crucial time for make good financial decisions and that people should not be put off seeking advice: “If you only seek professional advice once in your life, this is the time to do it.

“Once the annuity decision is made it is irrevocable and on average life expectancy tables a 65 year old male is expected to live over 17 years and his female counterpart 20 years*, so people have a long time to live with their increased income.

“Those financial advisers who feel they really are not in a position to help by providing a full service can still pass you on to our service which in the vast majority of cases will help you improve your income significantly over what your own pension provider is offering.

“The Annuity Clearing House is specifically aimed at the majority of retirees who are not in a position to pay for full advice but who do want to increase their retirement income.

“Consumers must make sure their financial adviser has checked out this free service. If they need an adviser, phone ACH on 0800 1444 777.”

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