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Fidelity teams up with IFA for open market annuity service
by William Robins on Mar 05, 2012 at 13:45
Fidelity has teamed up with IFA Annuity Direct to offer annuity purchase guidance and advice to members of its defined contribution (DC) pension schemes.
The service, which will launch in July, will give members of Fidelity’s DC pension schemes the chance to shop around for what type of annuity they prefer, the best rates, as well as the option of having financial guidance or full financial advice to aid their decision.
Fidelity said it would go further than the requirements of the Association of British Insurers (ABI) code of conduct on shopping around, published today.
The proposition will include a default annuity shopping around facility developed by Annuity Direct chairman and financial adviser Alan Higham.
Higham said: ‘The recent National Association of Pension Funds research identified over £500 million a year of retirement income is lost because people aren’t helped to make the best choices across the whole of the annuity market. Not only does Annuity Direct have a best in class search platform but we also have a team of qualified staff who can help members through the decision making process if they need help.’
Higham has previously looked to partner with retirement specialist IFAs to share his process for advising on small pot annuity purchases at a low cost.
Julian Webb, (pictured) head of DC and workplace savings business at Fidelity said: ‘There is significant financial benefit to be gained by members in making informed retirement income choices and it is up to us as an industry to help them make the most of their retirement savings, not just in terms of the provider of the income but also the shape of that income.’
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