Pensioners Should Be Better Advised on Annuity Purchase

According to the specialist pension law company, Sackers, pension providers, scheme trustees and individual financial advisors might face a flow of complaints should it appear that they have left UK pensioners unaware of the annuity purchase procedure.

Those, who have not properly informed the pensioners on the availability of better annuity rates, thus committing procedural failures, might be obliged to pay compensation to their customers.

Let us remind that it has long been argued that the annuity purchase process is flawed because pensioners are not being given the open market annuity comparison option. Typically, this results in a 20-30% lower income for them.

The reports published by the Pensions Regulator and Financial Services Authority clearly show that 30-40% pension providers are in breach with the existing rules.

Even though the number of claims made to the Ombudsman associated with pension providers' and trustees' maladministration is not sufficient yet, the evidence against them is growing, thus, making more and more pensioners take the matter to authorities.