Annuities Explained Annuities & the FSA



Annuities and the FSA

What is the FSA?

The Financial Services Authority (FSA) is an independent body whose job is to regulate the finance industry within the UK. It was set up by the government with the aim of protecting consumers from financial risk. They have the authority to investigate issues, and to create and enforce rules. Most financial service markets, firms and exchanges are regulated by the FSA. If the FSA deems that a financial body is not meeting their required standards, they can take action against them.

Distrust of annuities

Financial worries weigh heavily on many minds at the moment, and provision for the future is understandably the main concern of many. Whilst annuities have traditionally been the way to go for many people entering retirement, the current economic climate has played a large part in earning standard life annuities a negative reputation. Alongside our growing distrust of annuities, are the complicated questions usually involved in making a choice of which annuity to purchase. Should I choose a joint or a single life annuity? Will my annuity be enough to live on? Should I stick to the same level of income every year? With all of your questions, and the large variety of providers to choose from, it is not surprising that many annuity purchasers are worried about making the right choice.

Examining your options

The FSA can help provide you with some peace of mind whilst you are exploring the annuity options available to you. It frequently and comprehensively reviews annuity providers to find out who is providing good service to their customers, and moreover, who provides clearly written, honest literature on the services that they provide.

The FSA reminds customers that they do have a choice when it comes to their annuity. You should be aware that you don’t have to buy your annuity from your current pension provider. You have every right to seek out a better deal.

One way to examine your choices is to take a look at the internet tables provided by the FSA. The tables are easy to understand and are impartial. This means that you are able to browse annuity information regarding single annuities, joint annuities and health-related annuity options, with no pressure to buy. The tables are designed to provide you with the valuable information you need, not to convince you to buy.

Thinking of Retiring Soon? Have a look at our Annuity Comparison Table

Summary

The efforts of the FSA to minimise risk to the consumer help to maintain annuities as a strongly viable option for retirement. Rather than being put off by the purported negatives of annuities, take the time to examine your options first. You could discover that purchasing an annuity is still your best option for a secure retirement.

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