Savers urged to be wary over widening annuity income gap

'It is likely you'll get a better deal by shopping around'

Martin Richmond
clock • 1 min read

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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Everything advisers need to know about using a DB SSAS

Everything advisers need to know about using a DB SSAS

A DB SSAS operates using the regulatory framework as traditional DB pension arrangements

Caitlin Southall
clock 06 March 2026 • 4 min read
Pension transfer times got faster in 2025

Pension transfer times got faster in 2025

Transfer times took 10.2 days to complete on average, Origo finds

Jasmine Urquhart
clock 05 March 2026 • 1 min read
Ros Altmann urges govt to 'press pause' on 'rushed' salary sacrifice cap

Ros Altmann urges govt to 'press pause' on 'rushed' salary sacrifice cap

Peer says legislation ‘not clearly thought through’

Jonathan Stapleton
clock 03 March 2026 • 4 min read