Aon says it has responded by developing the Aon Annuity Finder, a web-based service that provides quotes from most leading annuity providers within seconds.
The service also includes access to a helpline to handle questions from scheme members and guide them through the annuity options.
Aon Consulting principal in the benefit solutions division Helen Dowsey says: “Buying the right annuity is one of the most crucial financial decisions for DC members and in today’s environment we are already seeing implications of bad decision making when it comes to annuity purchase. Current rising inflation could erode the purchasing power of pensioners by 20 per cent, specifically those 60 per cent of retirees who simply opted for the cheapest option of buying into a fixed rate annuity.
“Having paid employer contributions and encouraged member engagement whilst the employee has been part of a company, it is equally critical that businesses ensure that members are making the best possible retirement decisions. Given Aon’s role in advising employer and trustees, it was a logical step for us to develop this annuity service for members.”