Aviva looks at wider annuity deal for small pensions
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Head of annuity marketing Darren Dicks says: "The vast majority of customers have what many advisers believe are uneconomical pots and there is a shortage of advice. About 60 per cent of customers are sticking with their pension provider and for many that is not very good value. We have a range of options, one of which is a third-party solution to offer other providers' annuities where we cannot offer a good rate. We could do it ourselves or we could do it with an already established firm."
Ernst & Young financial services director Malcolm Kerr says: "Smaller pots, in particular, need the best possible annuity rate and it is unlikely that Aviva is always able to provide that. I think this is a very sensible idea."
Worldwide Financial Planning IFA Nick McBreen says: "It complicates the food chain in terms of who is giving advice. This reinforces that people have to get the full picture before making a decision on annuitising."
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