Confused.com launches Confused Annuities
With more than one million people set to retire in the next 12 months, Confused.com has launched Confused Annuities, a new annuity comparison site, to allow consumers to easily compare annuities rates available on the open market. The new service, the first available from a major comparison site, will provide consumers the ability to compare annuities from leading providers including Aviva, Prudential, Legal & General plus specialists such as LV= and Just Retirement.
The majority of UK consumers are set to retire with a pension fund of less than £50,000, meaning it is vital that they maximise the income that this fund will buy them to ensure that they have a more financially comfortable retirement. Although the Open Market Option (OMO) has been encouraged by both industry and government for some time, according to the Association of British Insurers (ABI), only a third (36 per cent) of people buying an annuity in 2009 used this facility, with more than £5 billion of funds simply rolled over with the existing pension provider. Therefore, thousands could be missing out on a higher retirement income. By exercising OMO, it is estimated that a significant proportion of people could increase retirement income by as much as 40 per cent.
Confused Annuities enables individuals to check rates available from the leading annuity providers, tailoring the quotes to their own needs and investigating benefit options. Medical and lifestyle conditions can be entered to see whether they enable qualification for increased income.
Matthew Lloyd, head of annuities at Confused.com, said: "Having worked hard to save for their retirement it's important that consumers find the best annuity available to them, it could make thousands of pounds difference, something that is definitely worth investing a little time in. When making major financial decisions like buying a house or a car people usually shop around first - choosing an annuity shouldn't be any different. We're delighted that Confused.com is the first UK comparison site to offer an annuity comparison and hope it will benefit our 12 million existing customers and many new customers too.
"We hope that Confused Annuities will become the first stop for both people with small pensions who cannot access independent financial advice, and also a home for those requiring additional information, help and advice."
Customers who would like to make use of the new annuity comparison site should visit confusedannuities.com, where they will find a wealth of resources, including guides, information and the comparison tool.