FSA criticise insurers for poor annuity advice
15 May 2008
The Financial Services Authority (FSA) has criticised the insurance industry for mis-selling pension annuities after it found customers were given "weak" and "misleading" advice. A leaked report revealed that despite warnings two years ago, insurers continue to deny retirees essential information to aid their pension annuity purchase.
The report found that a large proportion of the information being sent out to customers was failing to encourage them to shop around, leaving them badly informed about how to get the best retirement income and many overpaying as a result. Further findings showed that half of insurers are overcharging their customers.
The FSA has given insurers six months to sort out the problem.
