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Aon Consulting
has launched an annuity service designed to tackle concerns that
UK pensioners are losing out on £360million each year through
poor retirement decisions.
The consultancy firm says pensions could be losing up to 30 per
cent on the value of their pension pot, and that the apathetic attitude
of many UK defined contribution (DC) scheme members suggests a lack
of understanding of retirement needs.
According to Aon, a third of retirees accept the general default
annuity, while 60 per cent opt for a single life, flat rate annuity,
pointing to a worrying lack of member knowledge and professional
advice.
In response to this, the firm has developed the Aon Annuity
Finder, designed to give employers peace of mind that their
pension scheme members are being professionally assisted with retirement
decisions. The service is based on individual member details and
requirements, and is web-based, providing quotes from most leading
annuity providers. It also includes access to a helpline manned
by qualified and experienced annuity consultants to take questions
from scheme members, and to guide them through annuity options.
Helen Dowsey, principal in the benefit solutions division of Aon
Consulting, said: “Given Aon’s role in advising employer
and trustees, it was a logical step for us to develop this annuity
service for members. Having helped employers and trustees maintain
healthy pension schemes, it is important that members are able to
them benefit from the right type of annuity that suits their needs
and maximises the value of the pension they have been saving for
throughout their working life.”
Access to the Aon Annuity Finder is not restricted to Aon Consulting
clients, and can be used by any company, regardless of size or sector.
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Pensions Age June 2008
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