Tesco to enter the pensions market
TESCO has announced plans to enter the pensions market with a new annuity comparison service.
Annuities are used to turn pension savings into a guaranteed income for the rest of an individual’s life
The retail giant has asked the Financial Conduct Authority for permission to add annuities to products such as motor and home insurance on its price comparison website www.tescocompare.com.
Annuities are used to turn pension savings into a guaranteed income for the rest of an individual’s life.
However, falls in annuity rates in recent years have increased the importance of savers shopping around for the best deal rather than settling for the annuity quote offered by their pension provider.
Tom McPhail from Hargreaves Lansdown, which also offers an annuity comparison service, said: “We have been campaigning for a more active shopping-around market at retirement. We believe it should be the default for everyone.”
However, Patrick Connolly at adviser AWD Chase de Vere said that savers should be careful when buying annuities without expert advice.
“Once you buy an annuity, that decision cannot be reversed.”
The Daily Express has its own comparison service at www. expressannuities.co.uk