Money News
1st August 2008
Annuity switching process stymied by delays
The majority of consumers who opt to change provider when they convert their pension pot into retirement income face delays in securing their money, it has been claimed.
According to the Financial Services Authority (FSA), six out of ten people who attempted to switch provider for their annuity experienced a time lag.
In response, the city watchdog has called on companies to improve the process and make it more efficient.
The FSA also discovered that 40 per cent of firms are failing to provide clear information about their schemes, leaving consumers confused and unsure how to exercise their open market option to switch companies.
Sarah Wilson of the FSA, said: "The decision on whether to buy an annuity from a current provider or to switch to another insurer on the open market can influence an individual's lifetime income.
"Poor communications from insurers may result in people making poor decisions or failing to take any action to maximize their retirement income."
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