The Answers –
Andy Tully, pensions technical director at MGM Advantage
It is harsh to single out corporate advisers for not doing a better job. But for a whole lot of schemes, it is true that if you just tick the box and send the form back you will get a basic annuity and that is that. Many people do therefore end up with annuities that are not tailored for their needs in any way, shape or form, and yes, that is the case for schemes overseen by corporate IFAs and EBCs.
That needs to improve, but we also have to accept the reality that the people with £10,000 to £15,000 pots are not going to get full advice. This means we need to design a system where there is a place everyone needs to go to to get advice on how to deal with their annuity, where they can be shown five simple steps to getting the right product for them.
Unfortunately the Money Advice Service do not look like they are interested in doing it. But someone needs to.