Pension providers Must Improve Urge Prudential

Having taken a look at the pensions market the Prudential Retirement Income Panel has stated that providers must do better with the services they provide to customers taking annuities. If they do not then it is going to be inevitable that more regulations will have to be introduced in order to manage them.

One of the biggest issues seen by the Prudential Panel is the time taken to translate a pension fund into an annuity. The pension fund is basically a large pot of money that is given to an annuity provider, who then pays out a regular amount in exchange for the lump sum. Any delays will benefit the annuity provider of course, since they can earn interest on the money they have been given.

A second point raised by the Prudential Retirement Income Panel, consisting of a group of retirement and pension experts, is to give clearer explanations of the options available when considering an annuity. This would allow people to make more informed decisions and select a retirement option potentially better suited to their needs.