Ros Altmann, Director-General comments on new shopping-around guidelines for pension providersMonday 17 January 2011
Ros Altmann, Director-General comments on new shopping-around guidelines for pension providers
"These new measures that will put more pressure on pension providers to encourage people to shop around before purchasing an annuity, is a small step in the right direction but they do not go far enough.
"Finding an annuity is not merely about securing the best rate, it’s about ensuring customers get the right kind of annuity to suit them and their individual circumstances.
"Saga is calling for all default annuities to be banned so that retirees are encouraged to look at the various options available and make a decision themselves. Offering a default annuity a few weeks before retirement could still mislead many people into buying the single life level annuity they are offered as a default. This does not provide a pension for a wife or husband, does not protect against inflation, may only have a short guarantee period and may not take account of the individual’s health.
"Finding a good rate is important but it is imperative that consumers are helped to understand the options that will provide the greatest benefit for their circumstances."
For more information please contact the Saga Press Office on 01303 771529
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