Study paints bleak picture of annuity advice

A study conducted by Aegon and the Association of British Insurers (ABI) found a large gap between commission rates paid by providers and the fees advisers expect. IFAs surveyed at Aegon's workshops said a reasonable fee for annuity advice would be an average of £733. However, annuity providers offer a standard commission rate of 1% of fund value, meaning many consumers may consider their pots unattractive to advisers. The ABI's research suggests 85% of annuities purchased in 2007 were from pots of less than £40,000, while 95% were below £80,000. With retirees need a pension pot of...