The Association of British Insurers (ABI) has launched a consultation on annuity rates transparency, following up on its commitment to help people approaching retirement get the best pension deal.
In brief, the ABI is proposing to:
1. Conduct a regular survey of all ABI members offering annuities, setting out a number of typical customer profiles and asking what income each of these would receive from an annuity.
2. Make this information available to consumers via the ABI website, along with other information about providers, such as whether they are offering guaranteed annuity rates and whether they refer pension customers to an annuity provider or a panel of annuity providers.
The consultation, which will run until 3rd December, follows the publication earlier this year of the ABI code of conduct on retirement choices, which requires members to provide clear and consistent communications to their customers in the run-up to retirement.
As part of the code, the ABI wants to help consumers understand how the products of individual providers fit into the wider annuity market.