Better treatment for pension annuity purchasers
The FSA is demanding fairer treatment for people buying their pension annuity. It has sent out a stark warning to insurers that they need to significantly up their game and stop selling customers short on pension annuities. The annuity market is estimated to be worth £17.6bn and insurance companies have endured a barrage of criticism over the way they sell uncompetitive annuities at retirement. Individuals with maturing pensions should be encouraged by their pension provider into using the open market option - simply, shop around for the best deal…..the best annuity rate.
But often consumers are persuaded to stay with their pension provider and end up with an inferior and often inappropriate deal, costing them hundreds or thousands of pounds over time.
