The survey covers the views of almost 12,000 annuity customers, who have benefited from an increased income thanks to an enhanced annuity. The main findings of the survey are:

• 74% have direct access to a computer (8,559)
• Of those that have access to a computer in some way:
• 63% use the internet to shop
• 82% use the internet for research
• 51% use the internet to review financial statements
• Only 16% use social networking sites
• 82% use e-mail

Interestingly, despite the high level of access to computers, only 35% of respondents (4,029) would like to see their pension details online and 33% would like to be able to change their details online.

Here at annuitysupermarket.com we take peoples privacy very seriously and any data collected is treated with strict confidence. Here is a extract from our data protection statement.

Annuity Supermarket Ltd is registered with the UK Data Protection Registrar and endeavours to follow all the guidelines and rules set out in the Data Protection Act 1998. We will not disclose your personal details to any third parties unless it is necessary to do so. On those occasions when we do need to disclose personal information, such as preparing Key Facts Illustrations for you, processing your business, or obtaining compliance and regulatory advice, we will do so on a confidential basis and in accordance with the Data Protection Act.

An article in the Telegraph by Rosie Murray-West stated, Higher paying annuities can be found by shopping around, but pension providers don’t clearly explain that you have a choice.

The article explains that many of the pension annuity providers have the information that informs you that you have the right to shop around in their literature but it is sometimes not as clearly explained in the literature as it could be.

The open market option has to be mentioned in the literature provided by pension companies to those approaching retirement, this is a rule laid down by the Financial Services Authority which is the watch dog that regulates pension companies.

“By shopping around for the best pension annuity you possibly get 20% more, and maybe even 30% more if you qualify for enhanced annuity rates because of lifestyle or medical conditions. Smoker pension annuity rates are quite often 15-20% higher than standard rates”, said Adam Benson, from independent financial adviser Retirement Solutions. “Obviously pension providers want to keep the annuitant to generate profit and that’s why they place the warnings many pages into the pack hoping people will not read it.”

Have the best annuity rates September 2010 got any hope of increasing?

It seems unlikely that the best annuity rates September 2010 have any hope of increasing. Therefore it makes shopping around for the latest rates even more important.

The average rate for a male aged 65 purchasing a level without guarantee annuity (based on a £10K purchase price) has decreased by 6.3% since last August, whilst the equivalent female annuity has seen a 5.6% reduction over the past year.

The latest reductions mean that the average male annuity rate has dropped by a massive 45.5% over the last 15 years, whilst female rates haven fallen by 41.8%.
Source; www.moneyfacts.co.uk

What can you do to combat the drop in annuity rates in September 2010

We asked independent financial adviser Adam Benson what retirees can do to combat the drop in annuity rates during September 2010, Adam said, “My very simple piece of advice for those approaching retirement in September is to not accept the first quote given to them by their pension company. Everyone has the right to use the ‘open market option’ which gives you the right to take your pension to another provider to buy your annuity.”

Adam also pointed out that only an independent financial adviser can get you the best annuity rates September 2010 because they have access to the entire market. We at annuitysupermarket.com have to agree with Adam and seeking advice can give you a significant boost in retirement income.

The Retirement Partnership managing director Steve Lewis offers a commentary on the latest annuity rates.

Since our last annuity update, annuity rates have continued their slide downwards. Our benchmark annuity (£100,000 purchase, joint life 2/3rds, man 65, women 60, level payments) was paying £ 6,080 per annum gross at the end of March but this is now down to £ 5,749 per annum a fall of over 5 per cent. During the same period the yield on long dated gilts fell from 4.48 per cent to 3.87 per cent. This is roughly in line with our rule of thumb which says that for every 100 basis points fall in yields, a level annuity will reduce by 10 per cent. Over this period yields have fallen by 60 basis points and the annuity income by 5.4 per cent.

Kevin Stelfox, Sales Director at annuity specialist Retirement Solutions said, “This kind of information is extremely useful, it does bring home the message that it is so important to shop around with your pension fund and not just buy your annuity from the pension provider you saved with. Everyone has the right to the open market option, but shockingly on a third of people use it, which is disappointing.”

Our own research at annuitysupermarket.com is that the difference between the best and worst annuity rates can be quite alarming, an example from today using research from assureweb, a 65 year old male, using a pension fund of £50,000 after taking tax-free cash, with a level annuity with no options and paid in advance would get £3,422 from the best provider Legal & General, but only £2,988 from the worst of eight providers, that amounts to 14% difference in income. This proves how important it is to shop around to find the best annuity rates.

Virgin Money says some companies take up to 51 days to transfer funds. On, say, a £100,000 pension pot, offering an income of £6,651 for a 65-year-old man and £6,270 for a woman, a delay of just one week could mean they miss out on £127 and £120 respectively. But a firm taking 51 days equates to a 10-week delay and costs a poor pensioner a hefty £1,270. People affected are those who have saved into private pension schemes.

Here at annuitysupermarket.com our advisers Retirement Solutions say that these delays can be avoided by just taking notice of three simple tips:

1. Act as soon as you get the wake-up pack from your pension provider. This pack will have all the information and paperwork required. It should arrive at least three months before you retire so take some time and read through it carefully.

2. If you are going to take advantage of the open market option then use a specialist annuity desk. A specialist annuity desk will do this sort of transaction everyday and will have contacts with all the providers to ensure that it goes through smoothly and without delay. Normally these advisers will not charge you a fee for the service as they will be paid commission from the provider.

3. Your adviser should keep in contact with you during the process. If they do not then you should keep in contact with them and make sure they are on top of everything.

Kevin Stelfox, Sales Director at independent financial adviser and annuity specialist Retirement Solutions, said, “The open market option was introduced to help people find better annuity rates, delays can cost them dearly. The majority of delays are caused by incorrectly completed paperwork. As specialist annuity desk like ours will hold your hand every step of the way and ensure paperwork is kept to a minimum and checked before going to providers.”