NAPF backs move to get savers hunting the best annuity

The National Association of Pension Funds (NAPF) welcomed today’s announcement by the Association of British Insurers (ABI) on a compulsory code of practice around pension annuity applications.

Joanne Segars, NAPF Chief Executive, said:

"This is a helpful step which will nudge more people into shopping around, ultimately securing them a better income in retirement.

"Failing to get the best annuity rate can have huge implications, and a bad decision can tarnish decades spent in old age.

"The difference between the best and worst annuities is often surprisingly wide, and can result in people losing a quarter of their pension rights.

"Looking ahead, more work is needed to help people get a better deal when annuitising small pots. And too many people are baffled by annuities, so the industry must do more to help them understand the choices available."

 

Notes to Editors:

The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contacts:

Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683. [email protected]