Pension firms to be forced to reveal rivals' offers

Sterling Pension Savings in the UK. A Ten Pound sterling bank note with a pound coin and a ballpoint pen, with focus on the word

Pension providers will soon be forced to reveal potentially better offers from other firms under new rules, giving retirees the chance to more easily compare deals.

The latest shake-up to the pensions market is designed to allow pensioners to shop around and switch if their own provider is failing them when it comes to retirement income.

Due to be introduced next year, the new rules will mean pension firms must provide information on offers from rival firms, making getting comparison quotes easier and clearer and ensuring the pensioners can see when they are getting a raw deal.

Christopher Woolard, director of the Financial Conduct Authority (FCA), said that he hoped the changes would "prompt customer to consider the benefits of shopping around and switching", and added: "The retirement income market is set for the biggest change in a generation. We want to ensure it is fit for purpose."

The FCA has also vowed to cut back on confusing jargon and said it is considering whether savers should be sent a simple statement outlining how much they have saved, as well as what type of pension they hold.

Andrew Tully, from retirement firm MGM Advantage, told the Daily Mail: "Pensioners are locked into poor-value annuities because they are not encouraged to shop around. If providing details of what rivals are offering provokes someone to look at alternatives, that has got to be positive."

What do you think? Would these new rules encourage you to shop around for your pension? Leave your comments below...
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