Details about a new pension passport have been revealed
The new pension passport will simply outline how much the person who wants to retire has saved up and what type of pension scheme they have.
Retired people can also use the pension passport to shop around for the best annuity rates in the market, just as you would shop around for the most affordable annual travel insurance online that also offers the best value for money.
Pension paper to be a thing of the past
One of the other main positives that the pension passport will bring is the reduction of paper that pensioners now currently experience with their pension information.
Lengthy wake-up packs are set to be a thing of the past, with the FCA looking into new ways for retired people to receive information about their pensions. Some ideas that are currently being discussed include quotes being set-out in clear bullet points to reduce the use of paper and internet videos that explain important aspects of a person’s pension.
Travel insurance businesses for the elderly and other insurance companies are now discussing a number of formats for the passport and the FCA has announced that they are willing to let insurance firms and brokers discuss and agree on an official layout for the pension passport. If no agreement is made then regulations will be put in place by the FCA.
David Geale, who is head of savings, investment and distribution for the FCA, told the Daily Mail, “While we have been developing the standards for the guidance sessions, we have been looking at all the other rules surrounding pensions and whether they are appropriate for the new environment we are going to be in.
“As part of that, we are looking at disclosure and what insurance companies ask consumers, and one of the ideas we are looking at is the pension passport.”
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