5 January 2015 Steve Webb calls for annuities to be cashed-in to extend pension freedom Many would love the chance to take the money instead of a tiny income But how would this work – what penalties and charges would there be for surrender? Pensions Minister, Steve Webb, has called for an extension of the radical overhaul of pensions to include existing pensioners who may have bought annuities but are not happy with their deal. In principle, I think this…
11 December 2014 FCA still fails to ensure customers are properly protected despite finding frequent mis-selling Regulator proposes more consultation and investigation instead of immediate action to protect customers Annuities irreversible, people still effectively forced to buy, but the most vulnerable being let down As annuities are insurance against running out of money if you live a very long time in retirement, those in poor health must be protected from wasting their pension funds The FCA has just published findings…
11 September 2014 Budget reforms drive massive move away from annuities and into income drawdown ABI figures show 50% year on year fall in annuity sales and >50% rise in income drawdown which carries high fees Fall in annuity sales would be even greater if pension firms allowed customers to use the new freedoms properly Pension providers still failing to put customer interests at the heart of their business The Association of British Insurers has just released figures that show…
4 August 2014 Standard annuities assume purchasers are in good health – selling them to someone with heart trouble and cancer is unjustifiable. Treating Customers Fairly requires protection against such annuities mis-selling. I challenge providers and regulators to justify selling annuities without clear risk warnings or suitability checks. The case of Mr. Wayne Davies vividly highlights the injustices of the UK annuity sales process. It is the worst case I have seen of the UK annuity system failing its customers. While…
10 March 2014 Media Pressure forces ABI to make more promises to treat customers better Annuity Customers need action now – not waiting yet another year Regulator needs to act quickly to ensure proper protection, not self regulation ABI has promised to treat annuity customers better for years – still not happening in too many cases: I’m pleased to see that the media pressure is helping the ABI to realise that it must ensure that its members improve the way annuities are…
14 February 2014 FCA Review is welcome but customers need urgent action not another review More delays mean more consumer detriment as companies sell unsuitable annuities to customers who do not understand the complex issues and jargon Need suitability checks and ban commission for all annuity sales to remove bias against advice The FCA’s Thematic Review of Annuities is certainly welcome. Its findings that the market is not working well are hardly a surprise, given the extent of media coverage…
12 February 2014 FCA Annuities Review is bound to find serious failings Annuities scandal must be ended to ensure better value pensions Annuities are sold as a ‘no-risk’ product, suitable for all but are actually high risk for those who buy unsuitable, irreversible pension income The FCA must act urgently as Treating Customers Fairly is about more than just ‘shopping around’ Providers must make suitability checks, give risk warnings and fair charges – currently they are not bothering to check and…
2 February 2014 Last week, there was an important debate in the House of Lords, organised by Baroness Sally Greengross, head of ILC-UK, sponsored by Legal and General and attended by annuity providers, brokers, advisers and consumer groups. The topic was ‘Are Annuities fit for Purpose?’ On the panel were Tim Gosden and Kerrigan Proctor of Legal and General, Dan Hyde from the Daily Telegraph, Sue Lewis of the Financial Services Consumer Panel, Tom McPhail of Hargreaves Lansdown, Jane Vass…
19 January 2014 Sunday Times calls for urgent action to address annuities market Please sign the petition to call for reform – You can sign here: https://www.formstack.com/forms/?1662003-GfcIepCLc4 More than 1000 people every day at risk of buying the wrong annuity and thousands of widows will lose out It’s great to see the Sunday Times running a campaign for annuities reform. This huge market is not working well for its customers and reform is required quickly. Many people just buy the…
17 January 2014 Steve Webb is right to delay introduction of charge cap – 2014 was too soon Cap new scheme charges to protect smaller firms’ workers but leave legacy schemes till after 2018 – and reform NEST charges to allow proper comparison Capping annuity charges is far more important anyway! Sensible decision to delay charge cap: It is good to see that Steve Webb has decided to delay introducing a cap on the charges paid by workers in auto-enrolment pension schemes. …