The FCA is going to force annuity providers to tell customers how much they can gain from shopping around.
Providers will need to give customers personalised information on their options, and they will need to show how much the highest quote available on the open market differs from their own.
This is a welcome step forward, as the FCA said that its research had shown 60 per cent of annuity customers failed to switch providers, and they estimated 80% could have got a better deal. This backs up our own experience.
We would suggest that it is as important to make sure the annuity is set up in the correct way.
For example, do you include…….a dependent’s benefit and if so at what rate, a guarantee period and if so for how long, value protection, escalation, have it paid monthly or annually, in arrears or advance, should you buy an invested annuity, a variable annuity, a fixed term annuity, a hybrid product (you get the point).
Also it is important to check whether you might qualify for an enhanced rate, as this can give a big increase in rates.
We feel it is important to get advice, to make sure you set up the right annuity and get the best rate, as normally once you have bought an annuity you normally cannot alter it.
This is an area we specialise in. We can advise on the full range of options, including looking at alternatives too, so an informed decision can be made. We automatically search the market for the best rate, rather than being told to do so, as we work for you.
We can help. Call us 01543 440300