Prudential is being criticised for including quotes for with-profits annuities alongside conventional annuities in information packs sent to retiring customers.
The insurance giant lists its ‘Income Choice' option alongside other annuity quotes, which the company says "don't offer as good value as they did in the past", writes the Financial Times.
But the paper quotes financial advisers who say the information may be misleading - though retirees may be enticed by a possible higher starting income, payouts can fall under a with-profits option.
Better Retirement Group director Billy Burrows said: "A higher starting income can look more appealing when a quote is compared against a conventional annuity.
"If customers are choosing Income Choice purely on the basis of the higher income, then there is a danger they may not know what they are signing up for because the income may be less in the future."
The Income Choice product was launched in 2009, when rates for conventional annuities were higher.
Prudential told the FT it did not automatically include Income Choice quotes in all retirement packs and does its best to ensure customers have access to the right information before selecting a retirement income option. It also promotes the benefits of seeking financial advice ahead of such a decision, it said.
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