Retirees shopping online for annuities

An overwhelming majority of annuity customers use the internet for shopping, research, financial management and communication, research from Just Retirement reveals.

In a survey of 12,000 annuity customers, Just Retirement found 8,559 or 74%, have direct access to a computer.

Of these people, 63% use the internet to shop; 82% for research; 51% to review financial statements while 82% use email. Only 16%, however, use social networking sites such as Facebook or Twitter.

"The proportion of people willing to use the internet for research is a particularly bright spot as there is a wealth of information available to help them through the maze of options at retirement and to help them keep in touch," says Nigel Barlow, head of research at Just Retirement.

"This result most definitely indicates that if providers make information available in a clear and concise manner, they can improve the experience and confidence of their older customers. For those at retirement, this can make a huge difference: many are very confused about what to do with their pension funds and have little idea where to turn."

Bob Bevan, founder of IFA web consultancy IFA Line, says the figures show how important the internet has become across all age groups.

Commenting on the low proportion of social media users in particular, Bevan, an advocate of IFA social media use, says: "People in all age segments are using social networking sites, albeit in differing numbers.

"However, the use of social media by financial advisers should not happen in splendid isolation but should be part of their overall marketing communications strategy.

"Social media is not a panacea, and any IFA who is betting the farm on purely communicating through Facebook and Twitter is likely to be very disappointed."