Jul 31 2008
The Financial Services Authority (FSA) has called for annuity rules to be made clearer for people saving for retirement.
A review by the FSA found while 60 per cent of 55 annuity firms examined offered clear information for people considering their retirement plans, "a significant minority" did not meet its requirements.
The choice of shopping around for the best annuity – the Open Market Option – should be made particularly explicit to those saving for retirement, the authority said.
Director of the Treating Customers Fairly department and insurance sector leader at the body, Sarah Wilson, said: "The decision on whether to buy an annuity from a current provider or to switch to another insurer on the open market can influence an individual's lifetime income."
People may not be getting the full potential from their savings product due to annuity providers not communicating clearly, Ms Wilson said.
In other retirement finance news, the British Insurance Brokers' Association said it hopes the new Equality Bill will bring discounted car insurance for older drivers.
