Retirees could boost retirement income by 10% by shopping around

Article date: 20 July 2009

  • Aviva launches annuity advertising campaign to help consumers

Aviva is tackling one of the nation’s retirement concerns head on with a new series of television and press adverts focusing on annuities.

The campaign, which can be seen on UK TV screens now, shows how by choosing the right annuity, individuals can boost their retirement income by up to 10%. The adverts are designed to inform consumers about the importance of shopping around for the best annuity rate, rather than simply sticking with their current pension provider.

Nearly 450,000 annuities are taken out in the UK each year* but it is estimated that only 37% are taken out using the Open Market Option. Aviva – one of the UK’s leading providers of retirement solutions – estimates that many consumers could get up to 10% more income if they chose this route.

Gary Pepler, marketing, brand and communications director for UK Life, Aviva says: “When devising this campaign we worked extremely closely with people approaching and in retirement to truly understand their wants and needs. We discovered that while most new retirees love the freedom that retirement affords, there are still concerns over managing money.

“For example, nearly half of retirees said they found it difficult to adjust to living on their retirement income in the first year, and more than a quarter said they overspent, seven per cent by a significant amount. Our latest advertisement series is just one of the ways in which we are addressing the concerns of today’s retirees by helping to maximise their retirement income.

“At Aviva we are keen to work with our customers to offer advice and find the right solutions to give them a more comfortable retirement, whatever their circumstances. It is vital that people make best use of the full value of their assets, whether these are pensions, property or savings. By taking control of retirement planning sooner rather than later and by seeking sound financial advice, we can help to alleviate people’s fears and prepare them for the retirement they deserve.”

People thinking about purchasing an annuity are advised to either speak to an independent financial adviser or contact Aviva on 0800 056 1643.


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Sarah Poulter      
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Notes to editors:

* 2007 – Most recent ABI statistics

An annuity is an insurance policy that provides a guaranteed lifetime income for people who have retired. People with personal pensions are obliged to use much of their pension fund to buy an annuity.

The open market option allows people to shop around for the best annuity rate. 

About Aviva
Aviva, the international savings, investments and insurance group, is the world’s fifth largest insurance group, serving 50 million customers across Europe, North America and Asia Pacific.

In the UK, Aviva is a leading provider of life, pensions, investment, general insurance and health products to more than 20 million customers. Aviva also provides roadside assistance through the RAC. Products are distributed through a number of channels including IFAs, brokers, corporate partners and direct to customers via the internet.

Aviva's UK Insurance business has a market share of around 15%, making it the largest general insurer in the UK. The business is focused on insurance for individuals and small businesses.

Aviva's life and pensions business in the UK has a total market share of 12% and a top three position in its key markets of savings, protection, and annuities.

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