Pensions - Articles - Aegon raises concerns about annuity re-selling

 Aegon raises concerns about how annuity re-selling would be carried out and is particularly concerned about vulnerable annuitants.

  

 Following the proposal from Pensions Minister Steve Webb, Aegon has outlined concerns about how some vulnerable annuitants may be targeted to encourage them to cash in their annuities.

  

 In light of this Aegon believes there needs to be a level of protection for these individuals and if this goes ahead conduct issues need to be considered.

  

 Raising concerns about how annuity re-selling, as proposed by Pensions Minister Steve Webb earlier this week, would be carried out, Kate Smith, Regulatory Strategy Manager at Aegon said:

  

 “Selling on an annuity undoubtedly has attractions to some people. While the former annuitant would get cash in hand, they would be losing out on the certainty of a guaranteed income. I’m concerned that vulnerable customers may be targeted or may voluntarily give up valuable benefits due to pressures put on them by others. Vulnerable customers need to be protected , one way of doing this could be by extending the ‘treatment of vulnerable clients principle’ principles set out Industry Code of Good Practice on pension incentive exercises to cover annuity re-selling . To enforce the Code, the FCA could adopt the principles in regulations.”