Annuity Companies To Tell How Much More You Get Elsewhere.
The Financial Conduct Authority (FCA) has yesterday announced that it will force pension and annuity companies to tell you how much you could gain from shopping around for an annuity with a competitor.
It found that over 60% of retirees were not shopping or switching pension companies when they bought an annuity and up to 80% of those not shopping could have got a better deal.
The “annuity comparator” will be incorporated into retirement packs that you receive from your pension company when you are close to retirement.
This will force pension companies to tell you how much annuity income you could receive from them but also include the highest quote available to the consumer from all other providers on the open market. There will also be a prompt to help the customer access the best quote – this will be a link contained in the information prompt.
The new rules will come into force in September 2017.
Pension companies will not all be happy with this. They are, after all, keen to keep your pension savings with them. That said, it is great news that we will all be reminded not just that we can shop around but also by how much better off we could be and also given details of how to get that higher annuity income.