26th November 2015
People in Essex, Surrey and Hertfordshire have the largest intermediated pension pots in the UK, according to new analysis from specialist insurer, Partnership.
Essex tops the charts with a typical nest-egg of £125,478, while Surrey and Hertfordshire respectively boast pots of £123,788 and £123,158.
These are significantly higher than those at the other end of the scale, where in Shropshire the average is £44,336, while Northumberland comes in with £53,538 and South Yorkshire, £56,736.
The analysis of almost 2,500 Partnership customers suggests that those in Tyne and Wear are the most ‘typical’ enhanced annuitants with an overall pot of £90,033 derived from two pension funds and taking a tax-free lump sum of £21,950.
Top 5 Biggest and Smallest Annuity Pots by County:
|County||Total Pot Size||Tax-free Cash|
|Tyne and Wear||£90,033||£21,950|
On a national basis, those in London have £110,775 and the South East, at £101,972 boasted the biggest single pots – almost £43,000 more than people in Northern Ireland, with £67,866.
Andrew Megson, managing director of retirement, Partnership said: “These figures reveal that a fairly concentrated part of Southern England boasts the largest pension pots in the UK, more than double the amount saved by those in Shropshire.
“Intermediated sales tend to be larger than average as these retirees are prepared to pay for financial advice but it does raise concerns as it suggests that they may have access to better outcomes.”
Irrespective of the size of your pot, Megson urged that it is vital to make sure that you receive the most income you can from your retirement savings. An annuity can provide a guaranteed income to cover the basics so you can have more freedom to enjoy the rest of your savings but you need to find the best option for you. A 65 year old man with a pot of £125,478 who had common conditions such as high blood pressure, obesity and diabetes could receive £1,050 or 14% more per year by shopping around so it is worth speaking to an adviser.