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.”

Related Posts

Tag Box

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.

High street banks refusing mortgages on new builds with escalating estate fees

High street banks are making a stand against unscrupulous developers who are charging freehold new-build homeo...
High street banks refusing mortgages on new builds with escalating estate fees

HMRC issues self-assessment scam warning

HMRC has issued a warning about scams in the run up to the self-assessment deadline.
HMRC issues self-assessment scam warning

Long-term fixed savings rates drop to levels last seen before 2017 base rate rise

The interest rates paid on fixed rate bonds have plummeted despite two base rate rises in the past two years.
Long-term fixed savings rates drop to levels last seen before 2017 base rate rise

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...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

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.

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...