Improvements to the pensions market are on the way for soon-to-be retirees from 1 March 2018 as the Financial Conduct Authority (FCA) introduces the Consumer Prompt legislation – new rules aimed at encouraging people to shop around for the best rates before purchasing an annuity.
Research from the regulator shows that most consumers fail to switch from their existing provider when buying an annuity, even though 80% could have taken advantage of a better deal.
Consumer Prompt will mean that all annuity customers will receive an information prompt before making a purchase. The prompt will show each customer the difference between the provider’s own quote and the highest quote available from all other providers on the open market, with a statement to confirm which company is offering the highest annual income.
The significant changes are set to improve the retirement income market for consumers by making those in retirement more aware of their options.
But what retirees must consider is that the alternative quote included in the prompt will not be based on their individual circumstances regarding health and lifestyle – key factors that influence a pension outcome.
That’s why, at My Pension Expert, we always recommend seeking professional advice as the top way to ensuring you’re getting the best value annuity deal – and acting sooner rather than later.
Why wait for a prompt to start shopping around when our expert advisers can do all the hard work for you?
Using our unique bidding system, our advisers can search the whole of the market so you don’t have to, and can help you find the right product with the maximum retirement income.
And we’ll take into account your personal health, wealth and lifestyle to find a pension that’s tailored to you. You may be better off financially with an enhanced or impaired annuity – Consumer Prompt won’t provide you with a comparable quote for an alternative product, but we can.
Deciding which product is right for you is one of the most important financial decisions you will make, and, with pension freedoms, remember it’s no longer compulsory to buy an annuity. You can do whatever you like with your pension pot, and we can advise you on how to make the most of it.
So what are you waiting for? Call one of our friendly Retirement Technicians free today on 0800 6899 335 and let us do the shopping around for you.