The ABI has published a guide which details the best practice for the retirement process. The ABI is very keen to ensure that retirees have everything they need to shop around and compare annuities on the open market to purchase an annuity and has produced a template letter for wake-up packs and also will release a template shopping around form for customers.
Helen White, ABI acting director of life and savings, says: “Pension providers have made huge strides in improving how they communicate with their customers during the retirement process. “This guide now cements together best practice so that customers can be confident they have all the information from their pension provider to help them make an informed choice and shop around for the best annuity on the market for them.
This year and next year in particular with the baby boomers will see a huge increase in the numbers of retirees that will purchase an annuity and estimates expect nearly 500,000 to buy an annuity in 2011.
Here at retirementsolutions.co.uk we asked independent financial adviser Matt Renier how he expected the best practice guide would be received, Matt said, “It is very important that consumers shop around and compare annuities as the difference between the best and worst rate can be significant. Also, smokers and those with lifestyle habits or medical conditions then many could get even more”.
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