Pensions - Articles - NAPF comment on ABI's consultation on annuity rates


 The National Association of Pension Funds (NAPF) has submitted its response to the ABI’s consultation on annuity rate transparency. The ABI has sought feedback on its initiative to increase the transparency of annuity rates offered by its members. It is building on the Code of Conduct on Retirement Choices, which the ABI published in March.

 The initiative includes a regular survey on notional annuity rates set by providers, which will be posted on a consumer-friendly webpage and will be accompanied by specific information on the annuity products that providers offer. It is expected to be an important tool for the code that will be implemented next year.

 Mel Duffield, NAPF Head of Research, said:

 “We support the ABI’s consultation as we have been asking for greater transparency in annuity rates and pricing for some time.

 “The ABI’s proposals are a step forward, and are likely to make it easier to scrutinise current pricing practices and see which providers are the most competitive for different types of annuity.

 “At this stage it is not clear to what extent the annuity rate tables will directly help consumers, but the proposals provide an initial framework from which to build on.

 “We believe that more needs to be done to help savers shop around for the best annuity. Currently, our opaque and complicated annuities system is preventing too many savers from getting a good retirement income. Consumers need to get clearer information and must be able to make simple comparisons on what is available on the market.

 “We would like the proposals to go further and make annuity provider’s retention rates available. This is a crucial piece of information to help the Government monitor and evaluate the impact and effectiveness of the ABI’s code and the use of the Open Market Option.”

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.