Providers should boost annuity market

Posted in General

11th May 2010

The amount of people taking an enhanced annuity doubled last year to 18 per cent, but it could be improved even further, according to Just Retirement.

Regardless of whether they take the enhanced annuity option or not, homeowners can provide themselves with more money to spend in retirement with an equity release scheme, such as a lifetime drawdown mortgage or home reversion plan.

Mike Fuller of Just Retirement recommends that providers improve communications in order to help people make the most out of annuities.

He also thinks that the process needs to become more streamlined, as typically processing an application takes 36 days. He advises that more people should use the open market option, which sees handling time cut to just 11 days.

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