We recently reported the ideas from Norwich Union and the Prudential to introduce some form of money back from pension annuities on death and the fact that the Government had failed to show any enthusiasm. Currently, when a person retiring purchases an annuity they can opt for a five or ten year guarantee. This means that if the person dies, the balance of five or ten years payments would be made to their estate.
The Association of British Insurers has now concluded a survey of the public after believing the Government did not give the idea a fair hearing and that insufficient guarantees are offered to people, meaning poor value for money.
Of the people surveyed, almost half said that they would be interested in money back guarantees and that they would be prepared to accept reduced income if the guarantees were allowed.
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