Leading enhanced annuity provider, Just Retirement, has called for the pension annuity retirement wake-up pack to be abolished. The firm has suggested that it should be replaced by a clearer set of communications starting some 5 years before retirement instead of just three months. It has also called for an proper independent body to police insurers communications, forcing business through the open market option (OMO) in cases where it finds that those communications are not up to scratch.
Independent research recently commissioned by the enhanced annuity provider found that many consumers criticised wake-up packs for containing too much information, with complicated jargon and threatening legal disclaimers. Consumers also felt strongly that there was not enough time to consider their decision. Their director of sales and marketing, David Cooper, staed that it is clear that the existing process is not fit for purpose. Regardless of the supposed clarity of any communication, expecting consumers to make very important financial decisions that close to their retirement with no previous guidance is really unacceptable.
Worldwide Financial Planning independent financial adviser (IFA) Nick McBreen says that urging people to engage earlier is absolutely the right thing to do. Most retirement packs are getting to be verging on the incomprehensible so some proper attention would be very useful to make these more user-friendly, and therefore help consumers find the best annuity rates at retirement.
