View more on these topics

Nationwide offers £250 annuity shopping around incentive

Nationwide has committed to paying customers £250 if the building society’s annuity shopping around service is unable to offer them a better deal than their existing provider.

The Nationwide “annuity challenge”, launched today, guarantees that the building society will increase a saver’s retirement income by beating the annuity quote from at least one of their current pension providers.

If the Nationwide Annuity Service is not able to achieve this, Nationwide says the customer will be paid £250.

Nationwide head of product – protection and investments Guy Simmonds says: “The annuity challenge is a bold offer to customers to wake them up to the fact that an annuity is a long term investment where they have one chance to make the right decision, and by shopping around they could find a better annuity deal.

“They may be bombarded by paperwork or find it easy to tick a box on a form to accept an offer from their existing pension company, but it can have long-lasting consequences not to shop around for the best annuity deals.”

Nationwide launched its annuity shopping around service in March 2012. It offers rates from a panel of six providers – Aviva, Canada Life, Just Retirement, Legal & General, LV= and Partnership.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Ha…I shall be pointing all our Guaranteed Annuity Rate and underfunded GMP clients at Nationwide, as that would an extra £250 for them 🙂

    However, I suspect that there will be a lot of ‘small print’

  2. Does that not break FCA rules on bribery and incentives?

  3. Do they have to beat the hypothetical rate or actual income. If you look at the PICA website they charge an awful look to arrange said annuity, so the net result to the client could be worse than a headline rate.

Leave a comment