New code to find best pension deal
Hundreds of thousands of people approaching retirement each year will get more support to help them find the best possible pension deal under a new code being introduced on Friday.
The Association of British Insurers (ABI) has drawn up the code, which says that people must be encouraged to shop around when they buy an annuity, which sets the size of their pension for life.
Concerns have been raised that many people are not even aware that they do not just have to accept the annuity being offered by their pension provider – and this lack of knowledge could leave them short-changed by thousands of pounds over the course of their retirement.
The ABI said research has shown that one quarter of people approaching retirement feel they do not fully understand their options, while a third do not feel confident about comparing quotes between providers.
Under the code, insurers will encourage customers to consider their retirement options at least two years from retirement.
In the final months leading up to someone’s retirement, the insurer will send details explaining the various options, such as combining small pots and shopping around for the best annuity.
The benefits of looking at what other providers have to offer should be clearly highlighted, along with sources of further advice.
Insurers will no longer include annuity application forms, to lessen the chances of the customer simply buying from their current provider.
The efforts are part of wider moves to boost confidence in retirement saving as the Government rolls out its automatic enrolment programme, which will eventually see around 10 million people placed into workplace pensions.
Official figures recently showed that just 46% of employees belonged to a workplace pension last year, marking the lowest level recorded in 15 years. The City watchdog is looking at how the market could be shaken up to encourage retirees to compare deals.
Latest posts by Sally - Silversurfer's Editor (see all)
- Did Prince Andrew’s Newsnight interview make his predicament better or worse? - November 17, 2019
- 400 Years Young! - November 13, 2019
- Get more out of your phone - November 12, 2019
- Asparagus, pancetta and parmesan linguine with chive cream - November 11, 2019
- Should playing tag in the playground be banned in Primary Schools? - November 11, 2019
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!