More policyholders than ever are shopping around for the best deal and leaving the provider with which they’ve accumulated their funds, according to analysis of Origo’s pensions transfer data.
The FCA recently published data showing that purchase of annuities had risen by 38.7% between the 2022/23 and 2023/24 tax years, as higher available annuity rates have made the products more attractive to advisers and their clients.
The fintech says data from its Transfer Service, which undertakes annuity transfers for all of the providers offering annuities in the UK, shows that while 45% of people are buying their annuity from their pension provider, 55% of annuity buyers have shopped around for the best terms and have switched provider.
Anthony Rafferty, CEO, Origo, said he was hopeful that the data showed “a trend where even more people will look to the wider market to ensure the rate they are being offered is the best for them.”
He continued: “Responsibility for ensuring sufficient income in retirement now firmly sits on individuals’ shoulders. Once an annuity is purchased it cannot be reversed, so getting the best deal at the time of purchase is essential.
“It may be that their current provider offers the best rate for their circumstances, but it is more important than ever that people know they have the option to look around and are exercising that option to switch should it be better value for them to do so.”
Origo recently launched an Annuity Transfer Tracker, which takes real-time data from the Origo Transfer Service between pension providers and annuity providers, and enables advice firms to see the progress of their clients’ switch within their back-office/CRM, avoiding the need for chase-up calls to providers.
Rafferty adds: “The Origo Annuity Transfer Tracker can greatly enhance advice firms’ service to their clients by keeping them up-to-date on the progress with their pension to annuity transfer.”
