Saga today announced that customers who have taken out an annuity with the Saga Annuity Service since its launch at the end of last year, will together benefit from almost £2 million* more income than they would have done if they had remained with their existing pension provider. By exercising their right to shop around for an annuity, Saga believes that customers typically receive 10% higher returns than provided by their original pension provider **, resulting in an average lifetime enhancement of almost £3,000.
Ali Crossley, C.O.O, Saga Personal Finance, commented: “Figures show that only two fifths of people take advantage of the open market option when buying their annuity. This means that the vast majority are missing out on a considerable amount of money during their retirement years. We urge all retirees to look around for the best deal on the market at this important time.”
The Saga Annuity Service was launched in October 2009 aimed at providing an increased pension income for people with average sized pension pots – around £30,000. The range incorporates a standard annuity, an Annuity Plus product for those with certain medical/lifestyle conditions and an enhanced annuity for people with more serious health complaints.
*The £2 million figure has been calculated assuming that each customer received a 10% uplift by shopping around, and multiplying this by that person’s life expectancy based on their age and sex.
**The average uplift people can expect to receive by using the OMO is 10% -source L&G
For more information please contact the Saga Press Office on 01303 771529