How to Maximise Your Retirement Income

Relying solely on annuity rates when planning for retirement income could lead to savers being locked into a pension for the rest of their lives that doesn’t suit their needs

Fidelity International 23 August, 2013 | 7:00AM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Julian Webb, Head of DC and Workplace Savings at Fidelity explains how you can boost your pension. 

The Association of British Insurers’ new ‘Annuity Window’ service is a good addition to tools available to help savers shop around for the best annuity available to them. Providing comparisons of the rates available from different providers, the service shows people what’s out there beyond the range of their current savings provider. In itself, this is a good thing. We’ve long urged retirees to shop around for the best annuity available to them. However, rates are only one part of the story. To make the most of their retirement savings, people need to consider the shapes and types of annuity – or whether they want an annuity at all – before making this cliff-edge decision.

Those looking to secure their retirement income need to be sure they are considering all of the options, and in the case of annuities, whether the style and terms suit their personal circumstances. From marital status to health conditions, annuity providers offer differing income depending on an individual’s needs and life expectancy. Whether savers wish their spouse to receive income after their death, or to protect their future income from inflation, there is more to be considered than the headline rates the ABI shows.

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Fidelity International

Fidelity International  

is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific.