Wrong annuities could leave pensioners with debt problems
Wrong annuities could leave pensioners with debt problems
- Friday, 27 August 2010Retiring workers could face significant
debt problems if they fail to shop around for the best annuities.
Pension companies are required to inform those approaching retirement age that they can shop around for annuities, with those failing to do so liable to lose as much as half of their income, an expert from Hargreaves Lansdown warned.
Laith Khalaf told the Telegraph that the difference between the best and worst rates in the annuities market is 20 per cent.
Annuities are used to turn pensions into an annual income and choosing the right one can be a difficult process, the newspaper noted.
"The government is now looking at ways to steer people towards shopping around because ultimately it is in their best interests to do so," Mr Khalaf was quoted as saying.
Potential
debt problem for those in retirement could be further exacerbated by the fact that a third of adult children expect they will need to rely on their parents for financial support during their twilight years.
According to research by Aviva, one in five retiring parents thinks they will continue providing their child with financial support in the future.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...