A new online annuity service has been launched by one of the UK's leading financial service providers.
Fair Investment Company's new service uses the Open Market Option to help customers find the best annuity rates available to them.
The service offers both standard and impaired health annuity quotes, and can also offer pension advice and help with pension drawdown, as George Ladds, head of investment and pension research at Fair Investment Company explains.
"Our new service offers two retirement fund solutions – the first is an open market annuity service covering impaired life and standard annuities through The Annuity Team, the second, a pension draw down service through the Fair Investment Advisory Service.
According to Fair Investment Company, a third of annuitants are either not aware that they could get much more for their pension fund by shopping around or think the process may be too complicated, and simply ‘default’ into their provider’s annuity.
The firm says it has launched the new service to show people how much more they could get for their pension fund by shopping around and how easy comparing annuity rates can be.
"We have launched this service to show that shopping around for a better annuity rate doesn't have to be complicated, and the result could mean getting up to 30% more from your annuity," explains George Ladds, head of investment and pension research at Fair Investment Company.
People with impaired health can get enhanced annuities, but, says Fair Investment Company, often providers do not ask about customers' health.
"Unlike with life assurance, where poor health usually means higher premiums, the opposite is true with annuities - poor health, and consequently decreased life expectancy means higher annuity rates, but many people don't realise how much more they could get by shopping around on a standard annuity, let alone if they have health issues.
"This is why we also offer an impaired health annuity service which aims to provide a higher annuity income for those people who meet certain health criteria," says George.
"And if people feel annuity is not for them, we can help them decide what is right - we offer a full service, helping customers to choose the best pension income route for their own circumstances," he concluded.
© Fair Investment Company Ltd