2014-01-07 09:41:04 - MyLovelyRetirement.co.uk has stated their enthusiasm for the recent announcement regarding watchdog investigations within the annuity market.
Recently, announcements made by the Financial Consumer Services Panel, a watchdog group associated with the UK annuity market, provided ample fodder for criticism and critique of the loose business practices prevalent within the industry. MyLovelyRetirement, a UK-based organisation providing annuities, praised the statements made by the FCSP, an overt symbol of support for more stringent oversight and consumer aid within one of the UK's most important sectors for pensioners and future retirees.
Annuity rates are currently at some of their lowest levels in recent years, and there is concern that these reduced rates, combined with the high fees requested by brokers (the advisers who are recommending annuities) for their “professional” advice means that individuals are receiving significantly reduced pensions when viewed
in relation to what they might have been expecting previously. Because of this, it has never been more important for future pensioners to shop around when looking to buy their pension annuity, while, at the same time, ensuring that they aren't paying disproportionately high fees to brokers or middle-men working within the industry.
The investigation is targeted at both annuity providers (the insurance companies) and financial advisers that are active in the annuity market. Currently, the investigation is predicted to last for up to 12 months, allowing those involved to thoroughly assess the state of the industry before making their recommendations. The report being generated by the FCSP will recommend, amongst other things, a directory of “approved” annuity advisory firms that match or exceed the standards of care, fees, etc deemed acceptable by the group.
When asked to provide commentary on these recent changes, Allistair Miller, the director of MyLovelyRetirement.co.uk's parent company, Farsight Financial, stated, “At mylovelyretirement.co.uk we support this investigation and its findings; we would welcome the chance to appear on an approved register. We offer a non-advised service that enables customers to source their own pension annuity rates and decide which is the best for them. For the service, we receive commission from the selected provider up to a maximum of 1% of a pension fund (ignoring the tax free element) or £500, whichever is the greater. Depending on the provider selected, the service can cost as little as £50 , which also covers the complete setting-up process as well. We don’t believe there’s a need to pay large fees merely to receive help or assistance when purchasing a rate-driven product such as an annuity.”
MyLovelyRetirement.co.uk provides a whole of market service for customers to get annuity and pension quotes from multiple providers, thus allowing them to make the best informed decision on their retirement.