Partnership has launched an online solution to help advisers find the best annuities for clients retiring with funds below £30,000.
According to the ABI, 80% of annuity funds are under £30,000 (Q3 2009) with the vast majority of people not exercising their open market option to get the best annuity rate.
However, they could be missing out on extra income with the difference between the best and worst annuity rates as high as 30%, particularly for those with health conditions.
The new online service aims to help advisers transact this business in a profitable way by streamlining the process.
For a typical adviser the true cost of advising on a £30,000 fund is estimated at £750.
Given typical commission rates of 1.5% this could result in a loss of £300. Using the new system enables the adviser to transact an enhanced annuity online using 10-12 simplified 'yes/no' medical questions.
Partnership's managing director of retirement Andrew Megson says:"Many people are unable to take full advantage of their right to shop around for an annuity because their funds are too small to make it viable for the adviser community to guide them to a solution that could deliver them far better value.
"By providing answers to a short series of basic health and lifestyle questions, using a platform designed for speed and intuitive use, clients stand to benefit from the increased income of an enhanced annuity.
"This makes it far easier for advisers to grow their business exponentially in this important and neglected area of the market."
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