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Code of conduct for annuity market

A money tree05/03/12

By Matt Gibson

People hoping to make the most of their pension savings look set to benefit from a code of conduct  set up by the insurance industry.

The code, established by the Association of British Insurers (ABI), is aimed at restoring clarity to the annuity market, which can often be complicated and confusing for people approaching retirement age.

The code will require all ABI members to highlight their enhanced products and clearly signpost support and advice that is available to customers.

 The ABI said that a third of people fail to shop  around for an annuity, meaning they could be missing out on thousands of pounds over the course of their retirement. It also said that another common mistake made by customers is buying conventional annuities without checking if they qualify for enhanced versions of the same policy.

Otto Thoresen, ABI director general, said: "Improved processes, better signposting and transparency will combine to make customers more confident and more able to make decisions about their retirement income."


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