The pension annuity market is being improved. There is an ongoing investigation by the Financial Services Authority (FSA) which finds that insurance companies aren’t making annuity options clear enough. Retirees are losing a billion pounds a year because they fail to shop around for the best annuity deal when they retire.

Under rules, known as the open market option, those about to retire don’t have to accept the annuity, or annual income, offered by the company they’ve been saving with. Trouble is that many people still do choose this as the way forward, and it is too often the wrong choice.

The FSA has given companies until the end of the year to improve their position on this important matter; to make options at retirement clearer to retirees.

This entry was posted on Wednesday, July 23rd, 2008 at 3:13 pm and is filed under Annuity rates, General, Open market option. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.