The ABI says significant steps are being taken to encourage consumers to look around the market for good rates and says the industry is reducing the time it takes for annuity payments to begin.
ABI’s director of research and chief economist Rebecca Driver says: “In 2002, FSA research found that almost 80 per cent of joint life annuitants received a rate of between 85 and 95 per cent of the highest rate available in the market.
“Ours shows that almost 80 per cent of joint life annuities are sold at a rate above 95 per cent of the highest rate.”
Driver says the variety of annuity products available is valuable for consumers.
She adds: “Our goal is to ensure that they are better informed of the range of options they have and the key issues to consider when choosing an annuity.”