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Nearly half of those nearing retirement don’t plan on taking annuity advice

Nearly half of those retiring in the next five years do not plan to seek advice on their annuity purchase, according to Metlife.

The firm surveyed 1000 Britons and found 48 per cent of men aged 60-65 and women aged 55-60 either will not or do not know whether they will take financial advice on their retirement saving options.

Twenty-two per cent plan to consult an IFA while another 10 per cent plan to get advice from their pension provider.

Metlife says the research highlights high levels of uncertainty about which retirement income option is the most appropriate.

Nearly one in three do not know which option they will choose while almost 30 per cent of those surveyed believe a conventional annuity is their best choice.

There were low levels of recognition for other retirement income choices, it says. Impaired life annuities and income drawdown were chosen by just four per cent of those nearing retirement while only two per cent chose deferred annuities and with-profit annuities, the research shows.

Strategic development and marketing director Dominic Grinstead says: “Retirement savers have to literally live with their annuity choice and we would urge everyone to take advice on the decision. There are a wide range of choices and given current stock market volatility people need to consider all their options. Solutions which offer the option of guarantees on income and capital have an increasingly important role to play in the market.”

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