If you are taking your annuity soon we at annuitysupermarket.com can give you some helpful tips to make sure you do not get any delays. One of the benefits of the open market option is you can shop around for a better annuity rate. Of course, if the money is not moved from one provider to another swiftly then the savings will be lost.
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.”