Research uncovers the number of canny annuity shoppers

MGM Advantage, the retirement income specialist, has analysed the number of customers who shop around among financial advisers looking to compare annuity rates. Its research found that 4.5% of quotes produced each month are for customers using more than one independent financial adviser, an increase of 2% from the beginning of the year.Although the company acknowledges the number of customers shopping around IFAs is still relatively small compared to the number of quotes produced each month, it is keen to understand the customer behaviour.Aston Goodey, distribution and marketing director, MGM Advantage, said: "We were very surprised to find even this number of customers effectively window shopping around advisers looking to get the best annuity rate. It looks like this might be a growing trend - we know of one customer who approached six different advisers to try and secure the best rate.{desktop}{/desktop}{mobile}{/mobile}"As RDR approaches, we are seeing significant change in the market. The whole range of advice models are being adopted by the intermediary market and these different models also attract different annuity price models."Customer behaviour has already begun to react to these changes and shopping around for your adviser may become as important as exercising your right to the open market option."We have more work to do to improve information and education to ensure that customers understand their choices at retirement and seek the right level of financial advice for their needs. As we transition into the 'new' world of financial advice, it will be interesting to see how access to advice and customer behaviour changes."

Research uncovers the number of canny annuity shoppers

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