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

Scottish Widows launches pension tracing tool

Scottish Widows launches pension tracing tool

Some 3.3 million pension pots are 'lost' in the UK

Holly Roach
clock 24 June 2026 • 1 min read
FCA SIPP market consultation to set clear standards of due diligence

FCA SIPP market consultation to set clear standards of due diligence

Consultation closes on 24 August

Jenna Brown
clock 22 June 2026 • 4 min read
What Andy Burnham as prime minister could mean for pensions

What Andy Burnham as prime minister could mean for pensions

Triple lock and more

Holly Roach
clock 22 June 2026 • 2 min read