More than half (54%) of people aged 55+ who are considering an annuity said they would not switch providers because of the trust they have in the company they are saving from currently.
The Canada Life study found that 30% of respondents felt they had a good relationship with their current retirement plan provider, while 22% said they provided good customer service.
More than one in 10 (14 percent) of those considering purchasing an annuity in retirement said they would not consider switching providers when purchasing an annuity “at any time.” what price “.
Of those who said they wouldn’t consider switching providers, 14% said they wouldn’t know where to start, while 12% thought it would be too complicated or complex.
Almost one in 10 (9%) said they would not consider shopping due to concerns about the time it would take and potential delays in accessing an income, while 7% thought it could not. be done only by seeking regulated advice.
“Data recently released by the FCA shows that many people are not shopping around when choosing their annuity, suggesting that the ‘information prompts’ introduced in March 2018 have had little effect,” the director commented. of Canada Life retirement income, Nick Flynn.
“About one in 10 people who plan to buy an annuity in retirement will simply buy directly from their current pension provider, regardless of the income offered to them.
“This approach is unlikely to provide them with the best deal or type of annuity for their personal circumstances and will deprive them of additional income that may be available. As an industry, it’s up to us to do more to make sure customers don’t get a bad deal.
“Buying an annuity is an important financial step and an advisor or annuity broker will always be in the best position to help you understand the choices available.”
