Over 60’s wish they had done things differently
Annuities are still causing confusion amongst the over 60’s and those that have already purchased an annuity would have done things differently with the benefit of hindsight. These are the findings of new research* by Intune, the financial products and services provider owned by Age Concern and Help the Aged.

The poll amongst people aged 60+, reveals that over half (55%) of those eligible for a private pension are disappointed with the performance of their investment and wished they had invested their money in other ways rather than putting it in a pension:

• 37% would have put their money into savings or an ISA
• 11% wished they had paid off their mortgage faster
• 7% would have invested the money in stocks and shares

If they could do it all again, over a third (39%) of respondents wished they had started a pension earlier or paid more into it. A quarter (25%) of those who have already purchased an annuity are now regretting not having taken out an inflation linked annuity, as opposed to the more popular level annuity which pays out more initially.

Despite a third (35%) of respondents relying on an annuity to fund their retirement, there is still a huge lack of knowledge about what they are buying.

• Over half (58%) aren’t sure or don’t know that they don’t have to take out an annuity with their pension provider and that they can shop around. One in six (16%) of those who have an annuity wished they had looked for a better deal.

• One in five (20%) of those who have already purchased an annuity took out an annuity with their pension provider.

• The importance of buying an annuity is also underestimated. Worryingly, over half (52%) believe that once you have bought one you can or might be able to shop around for a better deal further down the line and change it to a more competitive product and they are not aware that once you have purchased an annuity, it is for life and can’t be changed.