Despite a rise in the amount of savings invested in annuities over the last year, 60% of consumers are failing to use the Open Market Option.
According to the Bank of Scotland Annuity Service (BOSAS), in the third quarter of 2006 more pension savings than in any other quarter over the last six years were rolled into annuities or income drawdown. It says figures from the Association of British Insurers (ABI) reveal in annuities alone the amount of savings invested has risen from £2bn in the third quarter of 2005 to £2.8bn by the same time this year. Kevin Pacey, head of BOSAS, says this trend can be down to a number of factors such as people waiting for the A-Day changes to take effect so they can take 25% tax-free cash. In a...
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