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Providers in bid to boost annuity shopping around

Pension providers are in talks about launching an enhanced annuity common quotation form for consumers to boost shopping around at retirement.

A common quotation form already exists for advisers, and allows users to obtain offer terms from nine major enhanced annuity providers by completing a single quotation request form.

Providers have held discussions about launching a similar service for people who do not receive advice.

Legal & General head of annuity strategy Tim Gosden says the development, which is being backed by L&G and seven other providers, could be signed off this month.

He says: “The enhanced annuity common quotation form is widely used by advisers but there is no version for consumers who are shopping around on their own.

“The form will be on a new website for advisers and consumers, and consumers will be able to download their own copy. This a big step forward for shopping around. We are meeting this week to get agreement to proceed.”

Gosden says the website will also contain information on retirement options and a link to the Pensions Income Choice Association’s directory of retirement brokers.

Rowley Turton director Scott Gallacher says: “Anything that helps people get a better deal on their annuity is a good thing but fundamentally most people should be taking advice because it is a complicated decision.”

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