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Tesco to launch annuity comparison service

Tesco-Building-700x450.jpg

Tesco is expanding its comparison service to include annuities.

The FT reports that the Tesco Compare service, which is currently used for car and home insurance quotes and better deals on household bills, will introduce customers to UK annuity providers subject to regulatory approval.

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Tesco says it has no plans to use data from its Clubcard customers’ shopping habits to source annuity quotes but will use its details about customers’ ages to promote it to those approaching retirement.

Last December, Lloyds Banking Group launched a non-advised annuity comparison service using a panel of 11 providers and sold products through its retail brands.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Will this be another ‘execution only servic’ that will get Tesco commission where as if I tell someone that xyz is best I have to charge a fee

  2. I am thinking of starting a comparison site for baked beans.
    This makes me a grocery expert. ;>)

  3. And what about making the choice between joint and single lives? Escalating or level? Synergy between the personal and State pension? (Tax rates? Deferment of state benefits etc.). Given the lamentable public ignorance of all things financial and current efforts to ensure that they receive the opportunity to maximise their pension pots is this latest venture going to help? Presumably Tesco’s are not doing this for wholly altruistic reasons and aim to make some money out of it – at the potential detriment to some perhaps?

  4. Annuity? That’s the one where you give all your money away to a life office and start getting back a small taxed amount of it in a trickle, and then if you die your money is given to strangers… How disgustingly immoral these things are.

  5. Or it could be that the customer is exercising their OMO, surley irrespective of advice this will put the majority of customers in a better place by sourcing through a panel, potentially obtaining an enhanced annuity than just remaining with their pension provider and the standard annuity they would offer.

  6. I don’t see any problem with Tescos doing this provided they operate on a level playing field i.e. pointing out the cost of purchasing an annuity through their comparison site and pointing out that annuities aren’t the only pension income option.

    I actually think that the amount of options available for annuities will confuse most people and hopefully push them towards getting advice. Just how many people will realise that the first quote you get isn’t always the final quote you have to take?

  7. Tesco is right in their business model, why try and give advice and charge a Fee when you don’t need to give advice and get more income by way of Commission!!
    It seems giving advice has bigger costs, lower returns along with a lifetime of potential liability du to no long stop and because of the Tesco brand folks will always feel they are getting the best “value”

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