This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-30427112
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Pension firms failing consumers, says FCA | |
(35 minutes later) | |
Some pension providers are failing their customers, the Financial Conduct Authority (FCA) has said. | |
Its review of the pensions market found most consumers were missing out on a higher income from their annuity because they did not shop around. | Its review of the pensions market found most consumers were missing out on a higher income from their annuity because they did not shop around. |
In particular, it said those who buy "enhanced" annuities were not being told about better value policies. | |
Enhanced annuities are designed to provide a higher income to those with major medical conditions. | |
It said some firms fail to tell customers with shorter life expectancy that they could get a better deal from a different pension provider. | |
The FCA launched an investigation into annuity providers in February, after finding that eight out of ten consumers who purchase an annuity from an existing provider could get a better deal on the open market. | |
The FCA also said insurance companies would have to follow stricter rules on how they sold annuity pensions to ensure people were getting the best deal for their retirement income. | |
It has made several recommendations, including requiring insurers to make it clear to customers how their quote compares with those from rivals. | It has made several recommendations, including requiring insurers to make it clear to customers how their quote compares with those from rivals. |
The FCA is seeking views on its initial findings and will consult at a later date if any potential rule changes are needed. | The FCA is seeking views on its initial findings and will consult at a later date if any potential rule changes are needed. |