The Government has today published the outcome of its Open Market Open Review in which the ABI has played a full part. It sets out recommendations to reform the way in which people buy annuities. Maggie Craig, the ABI's Director of Life and Savings, said:
"The market for annuities is competitive and vibrant, but not enough people are aware of all the options they have. We agree that clear information is needed when people are considering their options, in particular about their right to shop around - you do not need to buy your annuity from the same company that you have your pension with.
"We are incorporating good practice guidance on pensions maturities and transfers into the ABI's Customer Impact Scheme. We are also working with member companies to further improve the processes for converting pension savings into an annuity. These initiatives will help improve customer experiences and encourage innovative ways to reduce the time it takes for payments to start being made."
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Notes for Editors
1. Enquiries to:
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Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler 020 7216 7415 (Mobile: 07968 364 302)
2. Millions of people save for their retirement through a pension. When they retire, to turn those savings into a secure retirement income, they need to buy an annuity. This is the financial product that provides them with an income for the rest of their lives.
3. The ABI is the trade association for Britain's insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.
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