Thousands losing out to annuity 'inertia' - Just Group

Lack of consumer engagement

Ayesha Venkataraman
clock • 2 min read

Retirees are losing out on thousands of pounds of retirement income by purchasing Guaranteed Income for Life (GIfL) plans from their existing pension provider instead of shopping around for the best quote on the open market, according to retirement specialist Just Group.

The latest Retirement Income Market figures from the Financial Conduct Authority (FCA) show half (53%) of GIfL plans - more than 30,000 a year - purchased in 2020/21 were sold by pension companies to their existing customers. The lack of switching - despite the FCA's push in 2019 for firms in the guaranteed income market to provide the consumer with the best quote in the market - suggested the consumers' "misplaced loyalty and inertia may be eclipsing extra cash," Just Group said. In 2019, the FCA brought in changes to the disclosures given to consumers making complex choices about th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

London's millionaire exodus: Advisers will 'undeniably' see wealthy clients move abroad

London's millionaire exodus: Advisers will 'undeniably' see wealthy clients move abroad

Labour's budget ‘main reason' for latest UK exits

Isabel Baxter
clock 17 April 2025 • 6 min read
UK inflation drops to 2.6% in March amid warnings of further price rises

UK inflation drops to 2.6% in March amid warnings of further price rises

Down two percentage points

Sorin Dojan
clock 16 April 2025 • 2 min read
Rewriting the rules of engagement: Innovating for the future of wealth and financial advice

Rewriting the rules of engagement: Innovating for the future of wealth and financial advice

‘Hyper-personalisation and fintech disruptors are reshaping financial advice’

Sneha Shah
clock 15 April 2025 • 3 min read