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the FSA say |
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The FSA (Financial Services Authority) is an independent body set up by government to regulate the financial services industry and
protect consumers.
It states that the key messages for consumers are:
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Buying an annuity is an important step and
you do have choices. These choices are crucial because they affect how well-off you are in retirement.
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You should shop around for the
best rate before making any decisions. Contrary to popular understanding, you do not have to buy your annuity from the same insurance company you built your pension fund up with.
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There are
key questions which you need to think about to help you choose a suitable annuity which meets your needs. Questions include "is the annuity just for you or do you have a spouse you want to provide for?" "If you are in poor health, is a high initial income your priority?"
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Annuities are complicated so you should consider getting
specialist advice.
The FSA Consumer Helpline
The head of consumer education at the FSA has stated that she knows from calls to their Consumer Helpline that people assume they have no choices when it comes to buying an annuity. But this is
definitely not the case and they really urge people approaching retirement age to make themselves aware of all the
different options available. Buying an annuity is such an important decision and one that will affect how they live for the rest of their lives. The FSA want to help people make the right decision.
Source: FSA guide to pension annuities and pension fund withdrawal (04/2000)
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