Low cost provider Now: Pensions has partnered with Annuity Direct to offer members a whole of market annuity shopping around service.
The agreement will see Annuity Direct provide a non-advised service to all members when they are six months away from retirement.
Those who choose to use the service will each be charged the same amount, regardless of the size of their pot, through a “variable commission”. This charge will be taken from the client’s pension fund.
Now: Pensions and Annuity Direct declined to disclose how much this charge will be.
Members with more complex retirement needs will be offered full regulated advice from Annuity Direct, which will incur a higher charge.
Now: Pensions chief executive Morten Nilsson says: “I firmly believe that pension providers have a responsibility to offer members access to the best options from the whole marketplace when they reach retirement to make sure that their pension pot stretches as far as possible.
“Too often pensioners end up with an annuity that doesn’t reflect their individual circumstances or needs, and doesn’t give them the best value. By partnering with Annuity Direct, we are confident that Now: Pensions members will get the best possible retirement income.”
Annuity Direct chairman Alan Higham says the shopping around process goes “above and beyond” The Pensions Regulator’s requirements.
He says: “The Pensions Regulator has issued draft guidance that clearly shows it expects trustees to support members through their decision making process at retirement and monitor the outcomes achieved.
“We are delighted to be working with Now: Pensions to implement a solution that goes above and beyond the new demanding standards proposed by the regulator.”