John Perks, Managing Director of Retirement Solutions at LV=, said: “The pension freedoms are designed to give people much more flexibility over what to do with their savings so we fully support the removal of exit fees and any other barriers that prevent people from accessing their money as they want, and with the provider they want. It’s vital that people are able to shop around without penalty at retirement as we know that people who do so are much more likely to get a better deal.”
Background: The FCA retirement income market data (for July – September 2015 published in January 2016) showed that consumers are not shopping around for pensions. 58% of consumers going into drawdown stayed with their existing provider and 64% of consumers purchasing annuities stayed with their existing provider.
LV= analysis shows someone who takes advice and shops around for an annuity typically receives a 23% increase in retirement income.