ABI and FSA to promote TPAS annuity planner

TPAS technical director Des Hamilton said the Association of British Insurers and Financial Services Authority had agreed to promote the annuity tool in its guidance.

Hamilton told PP: "This should draw peoples’ attention to the annuity planner upon retirement. It’s very important that the planner still be used in three, six, 12 months, even two years’ time. So that people are aware of it because it will be of help.

"The planner is really aimed at a group of people who don’t have access to independent financial advisers. It’s a continuing process to help people get more out of it and their retirement."

Hamilton said people could also fill in the online questionnaire after using the planner, which would help TPAS improve the service.

He said new guidance from the FSA would review the practices and information insurance companies provided on the open market option, which is due to be published at the end of July.

TPAS said the tool would help people with relatively small pensions get good advice

on annuities.

Hamilton added: "It’s a self-help tool that tries to simplify a complex process and will encourage people to shop around and use the OMO rather than simply accept what is on offer from their own provider.

"The difference could mean as much as 20pc higher income for the rest of their life."