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.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.

1998 - 2009 UK Pensions - Planning before, at the onset and during retirement.

Join the Pensions NewsletterPensions Newsletter

Please enter your email below and subscribe to our monthly newsletter

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.