The regulator, the FCA, says that pensioners are losing out when they buy an annuity
It says the market isn't working and eight out of ten pensioners could have had a bigger pension if they'd shopped around
The financial regulator, the Financial Conduct Authority (FCA), says that the annuity market isn’t working well and it wants to investigate it further. An annuity is the product that converts your pension fund into an income when you retire. The FCA said that by not shopping around for an annuity, people lost out the equivalent of £1,500 over their lifetime, while those with small pensions struggled to shop around because very few companies bothered with this end of the market.
Buying a joint life annuity; how to make sure you both get a pension income in retirement
If your husband or partner buys the wrong type of annuity, you could be left without a pension
Thousands of widows and surviving partners are left without a pension every year after their husband or partner dies. That’s because their husband/partner has bought a 'single life' annuity with their pension pot, which is only designed to pay a retirement income for as long as he or she lives. Once they’ve died, it doesn’t pay a penny. In order to get a pension after your husband or partner dies, they have to buy what’s called a 'joint life' annuity. Ignore the jargon - it's a really important issue!
If you’ve reached state pension age and are on a low income, you may be able to claim Pension Credit
I’ve had a couple of emails about Pension Credit recently, from women who’d like to know if they’re able to claim it. Pension Guarantee Credit is available to you if you’re on a low income and have reached state pension age, and Savings Credit is paid when you reach 65. Figures from Age UK show that one in three people who are entitled to Pension Credit don’t claim it.