Retirees purchasing annuities – so-called guaranteed income for life (GIFL) products – should be wary of falling into a ‘loyalty trap’ that could see them missing out on substantial income in retirement, Just Group says.
The retirement income product provider said its analysis had revealed that the gap between the best and the worst guaranteed income rates had widened to a four-year high - with those purchasing the plans with the best rates generating an extra 16% income in their retirement. Its research found that the guaranteed income plans that generated the poorest outcome generated £3,137 a year in retirement income on a £50,000 purchase price for a 65 year-old retiree. By contrast, the best paying GIFL generated £3,642, an additional £505 income per year. The purchase of guaranteed income plans ...
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