Pension providers have been told to make sure they encourage customers to shop around before offering them an annuity.
The ABI has published a ‘Best Practice Guide for the Retirement Process', outlining the principles providers are expected to follow and the steps they should take to increase consumer understanding of retirement and the purchasing of annuities. It recommends customers should be sent all the information they need to shop around about four to six months before they retire, with no default automatic annuity offer made until six to ten weeks before the retirement date. Helen White, ABI acting director of life and savings, says: "Pension providers have made huge strides in improving how t...
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