ABI introduces pension guidelines

Tuesday, January 3, 2006

The Association of British Insurers (ABI) has unveiled a new guide to help insurers communicate with consumers about pension maturities.

The Statement of Good Practice on Pension Maturities outlines the steps customers should take when their pension matures, and how to buy an annuity when they retire.

The intention is that the statement can be used to develop the standard of the information and literature provided to the customer by insurers.

Ground rules are laid out for the production of customer information related to pensions, with the need for plain, consistent English, simple, clear guidance on further help sources and personalised consumer communications amongst the guidelines for consumer materials.

"This new Statement of Good Practice will help make the process of converting a pension pot into an annuity quicker and smoother," said Helen McCarthy, the ABI's head of pensions and savings development.

"In addition, we hope that the statement will further improve knowledge and understanding of the annuities market, in particular the consumers' right to shop around and get the best deal rather than automatically buying an annuity from their existing pension provider."

The ABI hopes that previous delays in transfers between pension providers will be eradicated by the efficiency that the pension guidelines will encourage.

Need to know more about pensions? Click here:
http://www.europinions-finance.co.uk/pensions/pensions/