Pensions warning over annuity delays

Thu, 08 Jan 2009

Those with pension funds due to mature could lose out if they do not transfer to an annuity soon, according to one expert.

Steve Hunt, managing director of Rockingham Retirement has warned that although annuity rates have been holding up well despite a plummeting stock market, pension customers should act now or miss out.

He said: "Some pensioners are in danger of the annuity rate falling before their funds are transferred, which could potentially cost them thousands in lost income."

Mr Hunt also called on the Financial Services Authority to clamp down on pension companies who drag their feet when it comes to purchasing annuities for their members.

Even a delay of a few weeks can make a big difference when it comes to pension income, he stated.

Last month, David Kuo, head of personal finance at Fool.co.uk, advised people to take the time to reassess their pension plan as state provision will not be enough to keep many people in the lifestyle they have become accustomed to.
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