The Financial Conduct Authority (FCA) is set to probe pension providers after its review into the annuity market found that 80% of consumers could secure a more generous retirement income by shopping around. The regulator has found that up to 150,000 consumers every year could benefit from shopping around by as much as an extra £1,500.
The regulator launched a thematic review into the annuity markets in January 2013 with the aim of discovering the extent to which consumers miss out by not shopping around. It found that 60% of consumers bought an annuity from their pension scheme provider and said that all annuities sold to existing customers were expected to be more profitable than those sold on the open market option.
The FCA will now use its new competition powers to launch a market review to look into the conduct of pension providers, consumer behaviour and the structure of the retirement income market.
It will also look specifically at the role of providers’ role in shaping consumers’ decision making.
By contacting Ward Williams Financial Services on 01932 830664, you could access the pension you deserve. Visit us at www.wardwilliamsfs.co.uk for more information.