You are here: Home - Retirement -

Consumers shop around more annuities

Written by:
People are ‘shopping around’ independent financial advisers (IFAs) in a bid to compare and secure the best annuity rates, according to research.

MGM Advantage found 4.5% of quotes produced each month are for customers using more than one IFA. This has increased from 2% at the beginning of 2012.

The annuity provider has said although this increase is small, they expect customers to increasingly take this approach.

Aston Goodey, distribution and marketing director at MGM Advantage said: “We were very surprised to find even this number of customers effectively window shopping around advisers looking to get the best annuity rate. It looks like this might be a growing trend – we know of one customer who approached six different advisers to try and secure the best rate.

Phillip Brown, head of retirement proposition at LV= agreed it is a growing trend, with 7% of LV= customers having used more than one IFA.

He said: “One of the FSA’s original outcomes for the Retail Distribution Review (RDR) was a more efficient advice market where people shopped around for the advice as well as the product. It’s interesting this is on the increase now. When people start advertising their propositions and people start advertising their fees and the service involved, you can see how that might drive [more] people to pick up multiple quotes post RDR.

“I don’t think it’s a bad thing, if you think about shopping around in anything; it’s not just about the product but where to source the product from. As a consumer it’s not unusual to get multiple prices for the same product. It’s just the next step on that people would get that with financial products as opposed to books and DVDs.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Flight delayed or cancelled? How you can claim £520 compensation

If your flight’s already been delayed or cancelled, or you’re jetting away this summer and want to be armed wi...

Could this be the secret to early retirement?

Taking an active approach to where your pension is invested means money is deposited into funds that can drama...

The essential money-saving guide for your 2018 holiday

Planning a trip away can be stressful, time-consuming and expensive but these are the industry’s top tips to e...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week. Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
UK banks fined record sums for money laundering

HSBC and Standard Chartered have agreed record settlements over money laundering allegations as the former agrees to pay $1.9bn to...