With annuities in the news following George Osborne’s budget announcement that the Conservative party propose to remove restrictions on selling annuities, it is also being reported by the Telegraph that savers will be informed if they’re being ripped off. They expect that pension regulators are going to announce that pension companies will be compelled to admit to customers if the annual income offered was significantly less than other deals on the market.
It’s par for the course for financial advisers such as CDG to put together detailed comparisons for clients showing the benefits and downsides of different decisions, and now it is being suggested that companies will be forced to do the same. Research has indicated that savers could be missing out on a lot of money in their old age compared to better value plans.
The Telegraph writes that the FCA have found evidence that a great many people have missed out as a result of the annuity they bought. The ultimate goal is that people shop around for a better deal and the regulator hope that giving consumers more information on the proposed performance of their annuity will achieve this.
What this highlights for us is the dangers of shopping around for financial products without professional financial advice. There are a great many websites and guides to help consumers find the best deal but this isn’t helped without transparency from providers. We welcome this move to help people get a better deal on their annuities.
That fact remains that people will always be better advised to seek financial advice from an IFA such as ourselves. You will be able to get a bespoke financial review including information about how your pension fund is performing and what annuity would work best for you – if an annuity is even the right decision at all. The first meeting with a CDG financial adviser is no obligation and entirely at our expense.
If you want to find out how CDG can help you, give us a call on 0115 977 1155 or drop me an email at email@example.com