London - Insurance companies will have to follow stricter rules on how they sell annuity pensions to ensure people are getting the best deal for their retirement income, Britain's Financial Conduct Authority said on Thursday.
The FCA was publishing findings from its study into the retirement income market after announcing in February that Britain's annuity pensions market is disorderly with insurers maximising profits and failing to give customers the best deal.
A pot of money saved over a working life is used to buy an annuity which pays out a regular pension until death.
The FCA said its study confirmed that competition is not working as well as it could for consumers, with many continuing to miss out on higher income by not shopping around.
Following its study, the FCA has made several recommendations, including requiring insurers to make it clear to customers how their quote compares with those from rivals.