Interesting to see the recent announcement that a major UK Insurance Company has been fined £30million by the Financial Conduct Authority (FCA) in relation to sales of annuity products to clients with maturing pension policies. The Company’s failure relates to the “non-advised” sale of annuities with the suggestion that staff incentives gave sufficient bias not to inform clients of the options suitable for them. It reinforces one of the FCA’s key messages when purchasing an annuity using a maturing pension; it is crucial to shop around to get the best deal and, ultimately, a higher income particularly if your health is anything less than ‘perfect’. There’s been lots written over recent years about the demise of the annuity market, the low income levels available and the lack of flexibility once the decision has been made but whilst these points are all correct, at least to some extent, we firmly believe there’s still a place for annuities for many clients seeking an income in retirement.
It’s relatively easy to get information on the rates available elsewhere from numerous comparison websites but doing this in isolation simply misses the main question “what is the correct solution for me?”. That’s precisely where an Independent Financial Adviser can help by exploring the different options and advising on the best way forward for your specific circumstances and needs. If you’d like to discuss your options, please contact either myself or my colleague, Gary Mothersill, for more information.