Manchester, Greater Manchester United Kingdom (PressExposure) May 23, 2011 -- According to the Chartered Insurance Institute, many people facing retirement are still not using the open market option to shop around for their annuities and as such are only achieving income levels which meet around 30% of their pre-retirement income.
Despite there being more publicity about annuity rates in the press and through pension magazines, and even a Government initiative being considered to make the open market option a legal requirement when searching for a pension, people are still not shopping around when making their annuity decisions.
With inflation increasing to 4% (2% above the Bank of England's base rate) and the cost of living also rising, now is as important a time as ever before, to ensure that the best annuity rates are secured for the highest possible retirement income. Using the open market option to shop around also ensures that anyone who is eligible for enhanced annuities will be able to receive the high rate.
To qualify for enhanced annuities you may not even realize that a condition such as diabetes or even high blood pressure can mean you are eligible for the higher rate.
Mr Evans, the CEO of MGM Advantage commented, "Many people are still failing to shop around when their pension matures to ensure the best possible income once they have retired."
One of the most beneficial things that pre-retirees can do is use comparison sites to compare the best annuity rates on the market. This process is free and easy to use as long as you have access to a computer and the internet.
Many pension companies also provide an annuity rates calculator which allows you to input information about your age, pension, location, etc, and then results will be returned to you which give you an overview of the market based on your current circumstances and will help you to source the best annuity rates.
To ensure the best results you need to do your research, which is something that financial advisers have been telling us to do for years. With the growth of information available on the internet, it is now easier than ever to make a well-informed financially savvy annuity decision.