The Pensions Income Choice Association is urging retirement specialists to join its retirement directory, with the aim that more pension savers will receive professional support when shopping around for a pension income.
The Pick-A directory has now opened for pre-launch registration for retirement specialists to be part of a consumer-focused directory.
Unlike Unbiased the directory will only list at-retirement and pensions advisers.
FTAdviser revealed in April 2012 that Pica wished to develop an adviser register to make it easier for consumers to find an adviser in their local area that will be able to offer advice on shopping around for at-retirement products such as annuities.
The directory will act as a ‘shop window’ for regulated retirement specialists to promote their services to people reaching retirement each year needing to make the right decisions when switching on their pension income.
The directory is free for intermediaries to appear within and free for consumers to use. All intermediaries must be authorised by the Financial Conduct Authority.
Intermediaries’ panels must contain companies that write, in aggregate, at least 75 per cent of the total market’s annuity premiums. There are currently around 12 to 13 companies competing for annuity business.
Pica’s aim is for the service to be signposted from key consumer sources including insurance company ‘wake up’ packs, government and other consumer information sites. However, this will not be possible if retirement specialists do not sign up.
The directory is provided on a non-profit basis and has been led by Pica but it has been developed with input from members of the public and from regulatory and government bodies including the Department for Work and Pensions and the OMO review group.
Tom McPhail, Pica chairman and head of pensions research at Hargreaves Lansdown, described the launch as a “golden opportunity” for intermediaries to showcase their services to a wider audience and benefit from thousands of new leads.
He said: “ More value is lost out of the pension system at the point of retirement than at any other stage in the entire retirement savings journey.
“Without someone to help them shop around for the right type of retirement income and to search the market for the best rate it is virtually impossible for pension investors to get a great deal from their retirement savings. This directory will help them to find the right help at the right price.”
Mr McPhail added that a good example is enhanced annuities, as only around one in 20 people get one when they buy directly from their existing pension company whereas one in two who use a retirement broker benefit from an enhanced annuity.
He said: “The directory provides a quick three-step process for consumers to assess the specific type of support and assistance they are looking for.
“It then generates a list of suitable intermediaries that are matched to meet these specific requirements and at a cost they can afford. This is particularly important for those people with smaller pension pots.”
To sign up, click here.
