Legal & General media response to launch of the ABI example rate tables.
21 August 2013
Commenting on the launch of the tables, Tim Gosden, Head of Strategy for Legal & General’s individual annuity business said;
“This is a very positive step in making the annuity market more transparent. Up until now only a handful of the annuity providers supplied their rates to online consumer comparison tables, such as the Money Advice Service. For consumers who have a pension with a provider that does not publish their annuity rates, it is extremely difficult for them to compare the annuity income they are offered with the incomes available from other providers in the market. So now all providers of annuity products have agreed to supply specimen annuity figures to the ABI, a full range of incomes available across the market will be visible for the first time.
These new tables compliment the ABI Code of Conduct on Retirement Choices that was launched in March this year. Consumers are able to see the range of providers available and then broadly assess the income options on offer. We see this as a positive step that will encourage them to shop around and make more informed choices about their retirement income. The next step for consumers should be to obtain financial advice and/or obtain personalised quotes from annuity providers, perhaps using a real time quote comparison service such as the Money Advice Service.
In an ideal world, all annuity providers should supply rates on a real time basis, rather than indicative rates, to enable consumers to obtain personalised illustrations that meet their individual circumstances. Hopefully that time will arrive soon, until then this is yet another step in the right direction.”
Notes to editors
The figures included in the ABI tables are specimen rates for Legal & General rates please go to Money Advice Service.
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