Hundreds of millions of pounds of retirement income is being lost as retirees remain stuck in the ‘clearly broken' internal annuity market, MGM Advantage has said.
The provider calculated that of the 50% of people who stay with their current provider only about 6% go on to buy an enhanced annuity. It said this could mean the other 44% receive a ‘poor deal'. It said this equates to £435,809,472m ‘lost' income during the course of an average retirement for the 60,328 retirees in the first three quarters of 2013 alone. MGM Advantage pensions technical director Andrew Tully (pictured) said: "These figures show just what a raw deal many people get at retirement. By sticking with their pension provider, they are effectively losing thousands of pounds ...
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