Article date: 6 May 2010
Aviva - the retirement specialist - has launched a new online retirement calculator for customers. Based on a simple, graphic interface it’s designed to make it easier for customers to understand the annuity options available to them and to work out how much income they may get from their pension fund.
The new retirement income calculator asks a series of straightforward questions and only takes around 10 minutes to complete. Customers will automatically be asked some simple health questions to help identify whether they are eligible for a higher income rate than standard.
Clive Bolton, "at retirement" director for Aviva, said: “Many people still don’t take an active role in buying their annuity and we believe this is because they think it’s a complex process. The trouble is - when you buy an annuity that’s the income you will receive for the rest of your life. So if you don’t shop around to get the best deal, it could literally cost you thousands of pounds over the years.
“Customers consistently tell us that they like to research their options, but they’re put off when they’re asked to supply their name or email address. To help, we’ve introduced an easy–to-use online retirement income calculator, designed to demystify buying an annuity and help customers understand the income they can get – without the need to disclose their personal details.
“The new calculator is the latest addition to our range of customer-friendly literature and online guides which help make life easier for people approaching retirement. For customers who have saved their pension with us, the calculator forms part of a simple process which makes sure they get an annuity quote tailored to their particular needs.
"It explains the different annuity options available - such as single or joint life, and level or increasing payments - and enables people to select their choices online. The calculator is also available to people who have saved their pension with other providers, allowing them to get illustrations tailored to their own personal circumstances.
“This is a massive step forward, and I hope that many customers use it to make sure that they have a better understanding of the income they could expect and then take an active role in their retirement”.
The launch follows findings of recent research undertaken for Aviva’s Real Retirement Report1 which found that the majority of people who don’t take out joint annuities, are unaware of what affects annuity payouts, and don’t even fully understand that they derive an income from an annuity.
The retirement income calculator is available via www.aviva.co.uk/annuities.
1 Research conducted as part of Aviva’s Real Retirement report, issued February 2010. Further detail available on request. Issue two of the Aviva Real Retirement Report is due May 2010.
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Notes to editors:
- Aviva is the world’s fifth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific
- Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion at 31 December 2009
- We are the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe
- Aviva’s life and pensions business in the UK has a total market share of 10.3%** and a leading position in its key markets of savings, protection and annuities.
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* based on gross worldwide premiums at 31 December 2008
** Source: ABI data released March 2010