Employee reward and benefits news
Pension buyers 'must shop around'
If people are not willing to invest time and effort into their future by being as considerate as possible about their pension choice, they could be undermining their quality of life, one commentator has asserted.
George Ladds, the head of investment and pension research at Fair Investment Company, made his point shortly after Life and Pensions Moneyfacts announced that annuity rates are at an all-time low, adding that people need to use the open market option available to them.
He explained that the new figures are "another blow" for people facing retirement, as they will be offered less for their pension pot than ever before.
Mr Ladds added: "Unfortunately, as we live longer, annuity rates are going to go down and pensioners have to accept that. But what they don't have to accept is the quote being offered to them by their provider, because more often than not, it will be beaten by another provider."
Earlier this week, Mr Ladds praised the increasing number of people taking out Isas, noting that people are being much more considerate about their own futures.
Click here for more UK employee pension news.
Posted by Michael Ewing
