The Financial Services Authority are out on their simplicity crusade again (which is very much welcomed by ).
Did you know that when you retire you have to buy an annuity with some or all of your pension pot? Well, this is true and quite worrying to some retirees. In return for the money you have built up within your pension, you will be provided with an income for life. You can add different guarantees and benefits to this income but, generally speaking, the more you add the less the regular payment to you will be.
Did you know that you could shop around for your annuity to get the best income possible? No? Well this is also true and the FSA believes it should be known by everyone.
By not having to buy an annuity from the company you have your pension with, you might be able to get a better deal. In this way it is just like car insurance (although you are looking for the most income in return for your lump sum, rather than the cheapest premium).
The FSA wants all insurance companies to add information on to their literature so you know you have the right to shop around. By highlighting the insurance companies that pay less, competition in the industry increases which only benefits the consumer.
Opinion
To the FSA we say "keep crusading!"
Links:Annuities explained.
Archive Story - Get a bigger pension fund.
Let us search for an annuity for you. Annuity enquiry form .