Pensions - Articles - Portal Finance comments on the FCA annuity reports

 Portal Financial, one of the UK's leading retirement specialists, warns that the FCA's report into failings of annuity providers emphasises the need to take regulated advice before making retirement decisions.

  

 The FCA's "Annuities sales practices" exposes worrying practices by annuity providers, which may have seen consumers lose thousands in retirement income. Almost two-thirds of consumers do not switch providers to purchase annuities, and 91% of those who took an enhanced annuity with their existing provider could have had a higher income by exploring the rest of the market.

  

 Most consumers were also not informed that a different provider may offer enhanced annuities for lifestyle factors or medical conditions that their existing provider did not cover.

  

 Jamie Smith-Thompson, managing director at Portal Financial, says:

  

 "This is a damning report that highlights the extent to which consumers have been let down by annuity providers. As they tend to be irreversible, it's crucial that everyone takes the appropriate steps to be sure an annuity is right for them and that they cannot get a better deal elsewhere. These failings mean it has never been more important to seek regulated advice before making a retirement decision, especially as there will be a far wider range of options for people to consider from April."