Retirees are losing out on thousands of pounds of retirement income by purchasing Guaranteed Income for Life (GIfL) plans from their existing pension provider instead of shopping around for the best quote on the open market, according to retirement specialist Just Group.
The latest Retirement Income Market figures from the Financial Conduct Authority (FCA) show half (53%) of GIfL plans - more than 30,000 a year - purchased in 2020/21 were sold by pension companies to their existing customers. The lack of switching - despite the FCA's push in 2019 for firms in the guaranteed income market to provide the consumer with the best quote in the market - suggested the consumers' "misplaced loyalty and inertia may be eclipsing extra cash," Just Group said. In 2019, the FCA brought in changes to the disclosures given to consumers making complex choices about th...
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