Prudential: Pension providers need to improve service

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Prudential: Pension providers need to improve service

Mon 21st Jan 2008

Pension providers must improve the service they offer to customers taking out annuities if they want to avoid being hit with additional regulation.

This is the conclusion of the Prudential Retirement Income Panel, which believes pension providers need to focus on speeding up the time it takes for pension funds to be converted into annuities.

It also says they need to improve the way in which they explain annuity options to customers approaching retirement so that people can make their own decisions without getting confused by jargon.

The panel, which is made up of a number of experts on retirement and pensions savings, warns that if providers fail to do this voluntarily then the government is likely to impose tough new standards.

Billy Burrows of William Burrows Associates said: "It is not about selling products and just providing information. People need advice. The challenge is how we involve people. If people get involved they will understand."

A report from Prudential shows that 52 per cent of people retiring this year have final salary schemes while 22 per cent have defined contribution schemes. However one in four do not have any pension savings.

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