Alexander Forbes has launched an online annuity supermarket to give mass market consumers an open-market option for annuities regardless of fund size or type.
According to ABI data for 2005, UK consumers currently miss out on some £44m of income in retirement by not shopping around to find the best annuity option. Although the difference between the best and worst annuity options can differ by as much as 20%, the majority of people fail to look around and just accept the one offered by their own provider.
Selecting an annuity on the platform is a two-stage process, the first of which is to make sure the right individual selects the right type of annuity and most appropriate features. For example, a person who would qualify for an enhanced annuity due to lifestyle factors such as smoking or obesity, could lose 15% or more of potential income if they bought a conventional annuity.
The second stage looks at picking the best market annuity for the purchaser's circumstances. All users are allocated their own adviser and can complete the entire purchase online or telephone or email for individual advice and assistance. The system uses a real-time quotation generator, providing an indication of the annual income a fund will generate once invested in an annuity and displaying the top result from approved UK providers.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation