Free Saga guide to navigating the pensions annuity maze

According to Saga Personal Finance an increasing number of pension providers are introducing arbitrary postcode rating for pension payments. As a result there has never been a more important time for retirees to shop around for the best annuity deal for their pension savings.

Saga has developed a guide to annuities that is designed to help those approaching retirement understand how they could enhance retirement income and make the most of their pension fund at retirement. The guide is designed to de-mystify annuities and retirement income options by giving information on the variety of choices available and in what circumstances they may be suitable.

The Open Market Option (OMO) was introduced by the FSA to give consumers the opportunity to shop around for their annuity and compare the value offered by the company holding their pensions savings against alternative providers. According to research less than half (40%) of people take advantage of the OMO.

Saga's advice to people who are approaching retirement in an uncertain market is to consider all the options available from the whole market of providers. There are thousands of options to consider from hundreds of providers, so taking specialist independent advice is vital.

In a large number of cases the type of annuity offered by the current pension company may not be the best for their individual circumstances. For example, it may not offer an income linked to inflation or the individual may prefer to opt for an annuity to guarantee payments for a certain period of time, even if they pass away in the interim. It is also unlikely to take into account any existing health problems that could mean that an impaired life annuity could be suitable which can significantly increase the income. For example, Openwork who provide the service for Saga have helped a smoker increase their annuity income by 28% and a client with cancer by 70%.

Saga has designed a guide to demonstrate that the process should not be feared. In fact, with the right assistance it is probably no more complicated than changing mortgage provider, a process that we are all now familiar with.

To obtain a guide or to discuss annuity options please visit saga.co.uk/annuities