People retiring in 2013 should be able to get a clearer picture of the rate offered by each Annuity provider, if new plans outlined yesterday come into force.
At present would-be retirees can only complete a full pension Annuity comparison by engaging the services of an Independent Financial Adviser (IFA). This is because some Annuity providers do not accept business directly from the public and others do not appear on online pension Annuity calculators.
However, the Association of British Insurers (ABI) yesterday announced plans to force all Annuity providers to disclose the Annuity rates they offer. Under the proposals the ABI will set out a number of examples and compel all their members to disclose the Annuity rate which would be offered for each scenario.
The move was welcomed by IFAs and Annuity providers alike, Andy Tully, Pensions Technical Director at MGM Advantage, saying: “This consultation signals a move by the ABI and its members to be more open and transparent around the annuity market and should be welcomed.”
He continued: “It will force providers who currently don’t compete for business in the open market to publish annuity rates which will then easily show where customers are getting good value from their pensions.”
Shopping around for the best Annuity rate
The new rules are part of the ABI’s new code of conduct, to be introduced next year, to encourage more would-be retirees to shop around for the best Annuity rate.
Retirement experts believe that at present too few people shop around for be best Annuity rate, often settling for a lower income, because they take the Annuity offered by their existing pension provider, or do not consider other options such as whether they qualify for an Enhanced Annuity.
Our team of Independent Financial Advisers in Nottingham are experienced in developing retirement income strategies for clients the length and breadth of the UK. If you are approaching retirement and would like advice on your options call one of our IFAs today on 0115 933 8433, alternatively enquire online or email info@investmentsense.co.uk
