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...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes