Nearly all (98%) Britons say they would take out optional insurance premiums for holidays, pet cover, and mobile phones before considering insuring their retirement income, research by Aegon suggests.
Yet almost a third (30%) of people asked before retirment cite ‘running out of money' as their major concern when they are no longer in work.
Aegon says there is an untapped willingness to guard against the risk of loss, however, with almost a quarter (24%) of people saying they pay more than £1,080 each year on optional insurance.
Almost 50% of people would consider a guaranteed retirement product to insure their pension income if they knew it was an option, the research suggests, pointing to a lack of understanding and knowledge of unit-linked guarantees amongst consumers.
Colin Bell, product director for unit-linked guarantees at Aegon, says: "Our research shows nearly a quarter (24%) of people are paying more than £1,080 each year insuring things like their holidays, white goods, pets and mobile phones.
"The research suggests people don't know they can also insure their retirement income, however, when they are made aware of the option, 49% of people who have yet to retire say they would consider it."
He adds: "We need to do more to educate consumers on the benefits of insurance - the protection against the most financially damaging events or serious inconvenience."
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