There has been a lot of anticipation in the press from experts that are waiting for the Government to make the open market option a compulsory part of the annuity buying process. However, the move to force everyone to shop around could lead to more people shopping online and choosing an unsuitable annuity.

Chief Executive of Panacea commented, “Opinion is divided about the way the market will work after the retail distribution review. Some believe it will benefit IFAs who have already made the change to encompass a fee-paying proposition…Others see an unintended consequence where a significant part of the population that currently benefits from advice will no longer be able access it in the future…There is certainly a danger that growth in technology could mean more people rely on this for their financial planning. They believe buying on the web through a guided process can replace advice…However, with ever-evolving and increasingly complicated variety of solutions, there is a real danger of mis-buying becoming common practice”

It is true that there are hundreds of different annuity options to choose from, which is why the annuity buying process should involve a shopping around stage. This allows more people to find valuable annuities which work in the best interests of them and their money. However, using the internet shouldn’t be discredited completely.

The internet provides valuable information and tools which allows a retiree to swot up on the latest annuity options. This, teamed with expert annuity advice from an advisor, is the best way to ensure you get the best annuity rates.