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Annuity Comparator

The annuity comparator is simply a new type of annuity illustration which informs the customer if there is another company in the market offering a higher rate. For example, if company A offers an annuity paying 2,500 per annum but Company B offers £2,600 the customer must be told there is another £ 100 a year on offer from another company.

The idea is to make it easier for customers to shop around for the best annuity and avoid customers rolling over into sub-standard annuities offered by their pension provider. This is clearly a noble aim and everybody who signs up to getting better customer outcomes should agree this is a good news story because more people should end up get higher incomes when they purchase an annuity.

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If you want to make the most of pension freedoms you should start planning ahead and make sure your financial affairs are in good shape in the years running up to retirement.

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William Burrows

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