09 March 2012
The Association of British Insurers (ABI) has launched a
new code of conduct for sales of retirement income
products.
The ABI's new code of conduct titled "Consumers in the
Retirement Income Market" will help ensure that people are informed
and equipped with the information they need to understand their
options.
The ABI said that its members would adopt the new code of
conduct by March 2013, or sooner if they wish.
"[This will] make customers more confident and more able to make
decisions about their retirement income," said Otto Thoresen,
director general of the ABI.
It will be mandatory for members of the ABI to follow the
code.
In summary it says:
- Provide clear and consistent information, including details on
how to shop around for an retirement income plan
- Highlight the details of enhanced retirement income plans - the
higher pension income available to those with shorter life
expectancy
- Signpost customers to external advice and support that is
available
- Give a clear picture of how their products fit into the wider
retirement income market.
Members of defined contribution pensions build up a pension pot
based on the amount of money paid in and the investment growth on
this money. At retirement, defined contribution plans don't
automatically provide an income.
Many people are unaware that they should shop around for the
best retirement income product to suit them and to get the best
rate.
To read the report and more on the code, please follow this link
to the ABI website:
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