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 this week, guarantees 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 for protection and investments Guy Simmonds says: “The annuity challenge is a bold offer to customers to wake them up to the fact 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.”
Intelligent Pensions technical director David Trenner says: “This is a nice marketing gimmick and if it gets more people to shop around then that has to be a good thing.”