Pension companies will have to tell you about rivals
From now on, people selling you pensions will have to tell you if they're ripping you off. More accurately, they'll have to tell you if their rivals offer better deals and such, according to the Financial Conduct Authority.
Businesses will now have to advertise what their competitors are offering and how much more you could earn if you switched to a different provider. This will happen every time a customer is sent a quote for an annuity. The FCA reckon that this will "prompt customers to consider the benefits of shopping around and switching".
FCA director Christopher Woolard said: "The retirement income market is set for the biggest change in a generation. We want to ensure it is fit for purpose."
The idea is that pensioners will not have blindly accepted any old rubbish thrown their way, and now, people looking at their retirement will start shopping around and looking for a better deal, rather than just accepting a poor-value annuity offered by the first firm to flutter their eyelashes at them.
The FCA also said that pension documents now have to contain a lot less jargon. People can't be bothered reading 20-odd pages of finance-babble, so companies need to do more to make it clear what they're offering. The watchdog is also looking at the idea of people being sent a simple statement by pension companies, which outlines how much money they've saved and what type of pension they have.
Good news, oldsters!