The gulf between the best and worst enhanced annuities is growing ever wider, meaning Britons are missing out on thousands of pounds of retirement income, it has been claimed.
This could lead a number of homeowners aged over 55 years to consider utilising some of the value of their home to boost their funds through an equity release scheme.
According to recently-published research by MGM Advantage, men choosing a bottom quartile enhanced annuity could be £10,129 worse off on a £50,000 pension pot.
The report showed that women stand to lose £11,351 based on the same figures.
Craig Fazzini-Jones, director at MGM Advantage, said: “There are significant differences between the best and worst annuity rates for conventional and enhanced annuities, making it more crucial than ever to shop around for the best deals.
“And, with annuity rates falling and likely to continue falling, it’s a good time to consider alternative retirement income solutions that can offer more flexibility than a fixed level annuity to maximise retirement income over the longer term.”
Homeowners who are curious about how a lifetime mortgage could provide them with a tax-free cash lump sum taken from the value of their property can find out by using the equity release calculator provided by Key Retirement Solutions.
Posted by Tom Papworth
