02 May 2008
The Pensions Advisory Service (TPAS) is pleased to announce the
launch of a web based tool to help people with the choices and
decisions they have to make when they come to retire and want to
turn their pension saving into an annuity.
The tool was conceived by a working party comprising the DWP, HM
Treasury, HMRC, the Pensions Regulator, Age Concern, the
Association of British Insurers, the Equalities and Human Rights
Commission, the Financial Services Authority and the National
Association of Pension Funds, and has been designed with their
assistance. We are grateful for their input.
The tool is available to all but will be of particular help to
those who have relatively small pensions savings and find
difficulty in getting good independent advice. It is a self-help
tool that tries to simplify a complex process and will encourage
people to shop around and use the open market option rather than
simply accept what is on offer from their own provider. The
difference could mean as much as a 20% higher income for the rest
of their life.
Mike O'Brien, Minister for Pension Reform, said "Choosing the
right annuity is one of the most important decisions a person will
take in their life. This web tool will help guide people through
the various annuity options such as providing for loved ones after
your death and protecting your income against inflation. People can
then make an informed decision about the best type of annuity for
themselves and their partner."
Angela Eagle, Exchequer Secretary to the Treasury, said "With
all the variety and choice in the market, it is really important
that people get the right annuity at the best available rate. This
webtool, one of the recommendations of the Government's review of
the open market option for pension savings, will help guide people
to make the right decision for their future."
Malcolm McLean, TPAS Chief Executive, commented "With the move
away from employer-sponsored final salary pension provision, more
and more people will be retiring from money purchase pension
schemes in the future and will need help to make the right
decisions in buying an annuity. Our tool will help them to
understand the choices they have and will give them confidence to
use the open market where better rates may be available. This can
make such a difference to their income in retirement but so many
still do not avail themselves of the opportunity."
Note for Editors:
1. The TPAS web address on which the tool is located is
www.pensionsadvisoryservice.org.uk
2. TPAS is an independent body supported by the Government which
exists to provide free information and guidance to the public on
pension matters generally.
3. Last year over half a million people used the TPAS
website.
4. TPAS provides a national pensions helpline 0845 601 2923
which is open 9.00 a.m. to 5.00 p.m. Monday to Friday.
5. TPAS acts as an impartial mediator in pension disputes
involving occupational, personal and stakeholder pensions. It has
no statutory powers and is not authorized to provide
financial/investment advice.
