Mandatory advice for annuity sales is a necessary protection, says TUC

date: Wednesday 9 December 2015
embargo: For immediate release

Mandatory advice for annuity sales is a necessary protection, says TUC

A change announced by the government today (Wednesday) to the Bank of England and Financial Services Bill, which will ensure impartial financial advice for savers selling their “high value” pension annuity, is a necessary protection says the TUC. 

Commenting on the announcement, TUC General Secretary Frances O’Grady said:

"Many savers have been badly let down by the failures of the annuity market. 

"Mandatory, impartial financial advice will help those selling their annuities avoid being ripped off for a second time. It is good that the government has recognised this.”

Expressing caution at the government’s plan to make the advice requirement apply only to “high value” annuities, Frances O’Grady said:

"It is important that the definition of 'high value' is not set too high. Even a relatively small annuity can provide a high proportion of someone's retirement income."

NOTES TO EDITORS: 
- More details on the government’s annuities plan can be read here: bit.ly/annuityadvice 
- All TUC press releases can be found at www.tuc.org.uk
- Follow the TUC on Twitter: @The_TUC and follow the TUC press team @tucnews