The National Association of Pension Funds (NAPF) welcomed today’s announcement by the Association of British Insurers (ABI) on a compulsory code of practice around pension annuity applications.
Joanne Segars, NAPF Chief Executive, said:
"This is a helpful step which will nudge more people into shopping around, ultimately securing them a better income in retirement.
"Failing to get the best annuity rate can have huge implications, and a bad decision can tarnish decades spent in old age.
"The difference between the best and worst annuities is often surprisingly wide, and can result in people losing a quarter of their pension rights.
"Looking ahead, more work is needed to help people get a better deal when annuitising small pots. And too many people are baffled by annuities, so the industry must do more to help them understand the choices available."
Notes to Editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683. [email protected]