The Association of British Insurers Reveals 30% Disparity between Providers
The Association of British Insurers has published example annuity rates being offered by its members. It has been published for the first time and claimed that the move will enable savers to better shop around their retirement.
Example rates have been showed for 12 customer profiles. According to ABI, the move was not intended to be seen as a price comparison service. Instead, it aimed to show what all was available on the market.
The figures revealed the wide disparity in rates were being offered by different providers. The disparity in rates was up to 30%.
If a 65-year-old person without any health issues from Manchester area buys an annuity with £18,000, he would receive 1,099.92 a year. Despite being the highest rate offered, it is just £839.52 from Scottish Widows, which is the lowest rate.
Otto Thoresen, who is ABI director general, said, "Increasing life expectancy and an era of low interest rates makes the need to secure an adequate retirement income greater than ever".
He added that the industry has been striving hard to ensure that people make the right decision, in order to secure the best possible pension.
The new tables will enable the readers to better understand where the good, bad and ugly rates can be found.
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