View more on these topics

Which? blasts Saga over confusing OMO/single-tie message

Altmann

Which? has criticised Saga for sending out a “confusing” message by having a single-tied annuity relationship whilst campaigning for prospective retirees to use the open-market option.

The consumer body says Saga’s tied offering with Legal & General “sits uneasily” with its calls for consumers to shop around for the best deal.

Last year, concerns were raised in Money Marketing that Saga was sticking with its single-tied offering despite campaigning for greater OMO take-up.

Which? says Saga’s L&G offering means someone with a medical condition and a £50,000 pot taking a level annuity would get £257 a year less than they would with Just Retirement and £254 less than with Partnership.

A Which? spokesman says: “We believe Saga’s tied deal with Legal & General contradicts their campaign for people to shop around to get the best annuity rate. Consumers should not assume that Saga will offer them the best deal.”

Saga Services chief executive Roger Ramsden says Which? Is not presenting a “balanced reflection” of its proposition.

He says: “We have never positioned ourselves as a provider who has access to rates from the whole of the market and have been very clear that our service is provided by L&G. The Saga Annuity Service offers one option to consider when buying an annuity, and is designed to give the prudent savers of Middle Britain a better pension deal.”

Ramsden says the service does not claim to offer the best rates in all circumstances.

He adds: “The reality is a significant proportion of consumers still do not shop around when choosing their annuity, and may receive a significantly worse return over their retirement as a result.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com