UK - Aspen Annuities has written to the UK's top 1000 pension schemes because it fears they may not be getting the best deal for their members.
The firm says annuities have changed rapidly but many schemes have not kept up with the market and are giving members a very limited choice.
Director Billy Burrows said: “We were surprised to find many schemes taking an unsophisticated approach to purchasing annuities at a time when the market is becoming increasingly more complex.”
Burrows added that it was no longer acceptable for schemes to offer annuities from just one company – as the company offering the best rates for men may not be the best for women, for example.
He said scheme members could get a much better pension simply because of their occupation or where they lived – points that many trustees fail to recognise.
Trustees lack expertise, time and resources to develop effective communications on technical pensions issues and need professional help, a major review of the British Steel saga has concluded.
In this week's Pensions Buzz, we want to know if you think trustees should consult directly with members before agreeing to a DB superfund buyout.
Thousands of savers taking tax-free lump sums ahead of retirement are at risk of a pensions shortfall in later life due to neglecting their remaining pot, Zurich has warned.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?