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Living Time
has launched its ‘Offer More Options’ campaign, aimed
at encouraging the financial services industry to do more to ensure
retirees take advantage of their open market option (OMO) rights
to shop around.
The retirement income consultant believes that, with many consumers
locking into lifetime annuities at the point of retirement without
ever being aware of higher paying income plans or more flexible
alternatives, it is time to modernise the industry and enhance the
range of options presented to consumers.
Living Time is inviting advisers, providers and commentators to
express their views and register their interest to its ‘Offer
More Options’ campaign, in return providing further information
on forthcoming road shows and adviser support tools.
Dave Harris, sales and marketing director, said: “This is
not just about finding the best income on a lifetime annuity, this
is about picking the most suitable retirement income product at
the right time from all the alternatives on the market.
“For many people, retirement heralds the single biggest investment
decision of their lives and choosing poorly will impact on their
income and quality of life for two, three or even four decades into
the future,” he added.
Harris said that, according to the Associate Board of Investors
(ABI), about 93 per cent of retirees buying a retirement income
stream – equating to about 400,000 individuals with £11bn
of pensions savings – opted for a lifetime annuity in 2007.
Many of these people were in the early years of retirement.
“The truth is that lifetime annuities are just one piece in
the jigsaw and it is time that all those reaching retirement were
shown the whole picture,” said Harris.
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Pensions Age July 2008
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