FSA wants better pension annuity switching process
Pension providers are taking far too much time in many cases of pension annuity switching-moving your pension fund to buy a better annuity rate-and must act to cut the time it takes for people to change provider, it has been claimed. The Financial Services Authority (FSA) is urging companies to make the switching process more efficient after a survey it conducted found that six out of ten people buying an annuity from an alternative provider were hit with delays before receiving their money.
Sarah Wilson, director of Treating Customers Fairly and insurance sector leader at the FSA, said: “The decision on whether to buy an annuity from a current provider or to switch to another insurer on the open market can influence an individual’s lifetime income. Poor communications from insurers may result in people making poor decisions or failing to take any action to maximise their retirement income.”
We back the FSA’s stance and are looking for great improvement in this important area of pension annuities.
