The National Association of Pension Funds (NAPF) commented on the investigation into the annuities market, which was announced by the Financial Services Authority (FSA) today.
Joanne Segars, NAPF Chief Executive, said:
“The FSA is right to launch this investigation into annuities.
“Greater transparency in this market is essential if people are to have faith in pensions. People need to know that they can turn their pension pots into good retirement incomes when they purchase an annuity. At the moment, consumers are dealing with an unfair and opaque system that is preventing too many of them from securing a decent income for their old age.”
A report published by the NAPF and the Pensions Institute (PI) last year showed that around half a million people retiring each year are being short-changed by up to £1bn from their total future pension income because serious obstacles stop them getting the best annuity deal.
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]