Julian Knight: Clear message to insurance industry - offer a better deal
Wednesday 30 January 2013
After buying your home, an annuity is probably your biggest financial purchase, but few of us take more than a few minutes to sign on the dotted line when it comes to retirement.
This isn't because we don't care – terrible annuity rates are a recurring concern in my weekly mailbag from readers – it's because the insurance industry has for decades been hoodwinking savers into not shopping around and merely signing up to the annuity offered by their insurance company, which is almost always a poor deal. This in particularly affects the ill and those who have a shortened life expectancy, many of whom are unaware that by shopping around and buying an enhanced annuity they could enjoy a far higher income than at present.
The FSA's investigation is a clear shot across the bows of the insurance industry, telling it the old practices of keeping secret the annuity rates they offer and using sophisticated marketing techniques to get six out of ten pension savers to sign up automatically to often poor rates have to come to an end.
The insurance industry says that it is putting things right, and points to a new code of conduct that is due to come into force in a few weeks' time. But the public, politicians and, it seems, the FSA are deeply unconvinced.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...