Now: Pensions members will be sent a pre-retirement information pack six months before retirement explaining their options and guide them through the decision-making process. The pack will provide an introduction to annuities and explain the benefits of consolidating small pots.
The process will ask health questions and enhanced or impaired life annuities will be offered where appropriate.
Now: Pensions CEO Morton Nilsson says: “Buying an annuity is one of the most important financial decisions you’ll ever make. Auto-enrolment means that in the future, millions more people will need to make this decision which, once made, is irrevocable.
“I firmly believe that pension providers have a responsibility to offer members access to the best options from the whole marketplace when they reach retirement to make sure that their pension pot stretches as far as possible.”
Annuity Direct chief executive Alan Hingham says: “The Pensions Regulator has issued draft guidance that clearly shows it expects trustees to support members through their decision making process at retirement and monitor the outcomes achieved. We are delighted to be working with Now: Pensions to implement a solution that goes above and beyond the new demanding standards proposed by the Regulator.”
