Only 50% of retirees plan to seek annuity advice

Half of Brits approaching retirement have no plans to seek advice on their annuity purchase, according to MetLife.

Furthermore, just one in five will speak to an IFA about their retirement options, despite widespread ignorance of the complex annuity market.

MetLife's research found 48% of those within five years of retirement age have no plans to seek advice on which retirement income product is best for them.

A mere 22% plan to seek advice from an IFA, while 10% say they will ask their pension provider for advice on how to use their retirement savings.

"Retirement savers have to literally live with their annuity choice and we would urge everyone to take advice on the decision," says MetLife's strategic development and marketing director, Dominic Grinstead.

"There are a wide range of choices and given current stock market volatility people need to consider all their options."

More than a quarter of those surveyed by MetLife say they would take a conventional annuity, with many unaware of the different annuity options available, such as index-linked and enhanced products.

Just 4% said they would choose an impaired life annuity or drawdown product when they reach retirement, while only 2% would choose a deferred or with-profit annuity.

Grinstead says most consumers are still unaware of innovation in the retirement market in recent years and should visit an adviser to explore all the options available to them.

Contact: John Bakie, Tel: 020 7484 9805, e-mail: John.Bakie@incisivemedia.com