I’ve just picked this item from Citywire. It is all about the FSA’s Moneymadeclear offering, and whether it is moving more towards annuity advice.
I haven’t seen it, but apparently buried on page 101 of the lengthy 268-page Budget report is a strong suggestion that Moneymadeclear, the FSA’s very useful consumer information service, could move closer towards advice on annuities than was originally thought.
The statement in the Budget suggests that the FSA’s new Moneymadeclear website and helpline will be available to help support people across the UK who are nearing retirement, to work out their retirement options and help them to find the best annuity rates. This will build on the work the government is doing to help people to get the most from their pension savings.
The item even raises the question as to whether independent financial advisers (IFA’s) and financial planners should be concerned at the potential competitive threat or as professionals do they welcome any attempt to help the consumer’s understanding of this complex area? Certainly, they’ll have to be up to speed when comparing annuity quotes for clients in the future.
Details of what precisely is going on are pretty scant at this point in time, but this very small reference could be a good indication of far larger things to come from the government and the FSA when it comes to looking at annuity rates and if it does, then it will be up to advisers to make their voices heard loud and clear.
Does the “page 101″ of the budget report give any indication that there may be some form of relaxation of the (present) rigid rule of having to take an annuity, or ceasing to take drawdown, at the age of 75 years. The Government’s financial borrowing has had a considerahe effect on annuity rates and has put those approaching 75 this year (as in my case) in a very difficult position.