New rules from the FCA will ensure, from this month, providers have to tell consumers when they could get a better rate elsewhere via an annuity comparator.

The (to be applauded) aim is to make it easier for customers to shop around for the best annuity and avoid them rolling over into substandard annuities offered by their pension provider. Nothing to argue with there. The problems arise when we take into account that rates are entirely dependent on (often complex) permutations like postcode, size, weight, drinking, smoking and so on – adding up to 30%.  Success of the initiative will be entirely down to the quality of information input. If, for example, a customer refuses to have their personal information used for the comparator – their illustration will be highly limited.

 

For more information, please contact us today. 

The value of investments can go down in value as well as up, so you could get back less than you invest. It is, therefore, recommended that you seek full, personal advice in respect of your needs where all appropriate risks will be explained.