According to a recent study by the Financial Services Compensation Scheme (FSCS), approximately 19 million people who are over 50 years of age aren’t considering annuities.
The research found that although only 10% of Britons in the target age group will take risks with their savings, less than 28% would consider buying or have bought one.
The FSCS underlined this statistic as evidence of a divergency, pointing out that although most people in this age bracket believe they are risk averse, most will not consider annuities as a pension option that might provide the security of regular income over a specific period.
The report discovered that 37% of those surveyed who are not willing to take risks are specifically worried about having sufficient money to cover the duration of their entire retirement, with over half of this group of respondents admitting they have little to no understanding of what annuities are and how they work.
Concerns which were identified by respondents included being unsure if annuities were right for them, fear of a provider of annuities going bust, not comprehending how annuities work and lacking protection should something go wrong.
UK savers with concerns regarding having adequate financial provisions in the future often consult experts in retirement planning in Chester, Manchester and other major cities. Wealth managers help their clients with both pre- and post-retirement plans to ensure they are prepared and that plans remain fit for purpose.
