Virtually half of over 50s don’t know that annuities are available in many varieties and with varied choices, in line with analysis from Customary Life, a part of Phoenix Group.
The research prompt widespread ignorance about annuities amongst older folks.
When those that had already annuitised, or deliberate to take action, have been requested about completely different annuity choices, there was restricted familiarity with the choices out there:
- Simply over a 3rd (37%) are aware of single life annuities.
- Solely 1 / 4 (26%) are aware of stage annuities.
- Only a quarter (24%) are aware of inflation-linked annuities.
- Solely 10% of over 50s are conscious of enhanced annuities.
- Simply 10% are conscious of worth/capital safety.
Many over 50s mistakenly imagine that annuities won’t enable them to move on wealth to surviving kin within the occasion of their demise, and state this as a key barrier to buying one.
One in ten (13%) aren’t planning to buy an annuity due to this purpose, with greater than half (56%) of throughout 50s unaware that an annuity will be set as much as cowl the lifetime of a surviving associate.
That can also be mirrored amongst these over 50s who’ve already purchased an annuity, or are contemplating doing so, with only a quarter (27%) aware of joint life annuities. Moreover, just one in 5 (20%) are aware of the time period “assure interval”.
Pete Cowell, head of annuities at Customary Life, stated: “In the end, essentially the most appropriate kind of annuity is often decided by an individual’s monetary objectives and particular person circumstances. The analysis means that many individuals of retirement age would possibly overlook their choices because of a lack of expertise and miss out on the peace of thoughts annuities can present. Skilled recommendation can play an important position right here in serving to folks perceive the true worth of an annuity.”
Annuity charges have strengthened considerably over the past two years and the newest Customary Life Annuity Charge Tracker discovered that charges for a wholesome 65-year-old reached 7.25% in September 2023.
• The analysis was commissioned by Customary Life and carried out by Opinium, with a nationally consultant pattern of two,000 over 50 years outdated, between 6th– 14th March 2023.