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Retirement savings code introduced

Published on 05 March 2012 11:00 AM

A new code of conduct has been introduced by the insurance industry, with the aim that customers will be able to better reap the rewards of their pension savings.

It is hoped that the initiative will ensure those who are approaching the age of retirement will get more help to receive the best income that they can.

The code was drawn up by the Association of British Insurers (ABI), who say one in three people do not look for the best annuity, and so could be missing out on thousands of pounds during their retirement.

The ABI also said that a lot of consumers purchase conventional annuities, even though they qualify for an enhanced option, because of their choice of lifestyle or medical conditions.

The code aims to make sure customers can find information which allows them to make a decision regarding annuities which suit their lifestyle and needs.

Members of ABI will have to give signposts for advice and support, and input transparency in the annuity market.

They will also be required to publicise enhanced products.

ABI's director general, Otto Thoresen, said: 'Improved processes, better signposting and transparency will combine to make customers more confident and more able to make decisions about their retirement income.'

About 300 firms who are members of ABI will implement the code over the next year, the association said.

Copyright Press Association 2012

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Last updated: Dec 05 2018

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