Pensions - Articles - Partnership welcomes ABI Code of Conduct

 In Partnership's opinion implementing the Code will undoubtedly reduce providers' use of customer inertia to sell in-house annuities at below market rates.

 In particular, adopting the Code should ensure that all customers are aware of and have considered an enhanced annuity, which can dramatically increase income in retirement.

 Partnership's research has shown that over 50% of 55 to 64 year olds can qualify for an enhanced annuity based on health or lifestyle conditions but in 2012 just 6% of those buying an annuity with their existing pension provider benefitted from an enhancement.

 Andrew Megson, Managing Director, Retirement at Partnership, said "The ABI Code of Conduct for Retirement Choices will benefit the third of retiring pension-holders who start shopping-around but fail to find their way through the difficult process and end up back with an uncompetitive rate with their existing provider. For pension providers, a key part of the new process is finding engaging ways, such as simplified underwriting, that encourage as many policyholders as possible who are eligible for an enhanced annuity to take advantage of this option."

 It is also important that customers who want advice or even just someone to explain the options can find an appropriate adviser. For this reason Partnership supports the initiative of the Pensions Income Choice Association (PICA) to develop an easily accessible directory of firms providing retirement planning and annuity services. (Partnership was a founder member of PICA).