Annuity holders may be due redress for historic mis-selling

October 19, 2016 | 5years | Retirement Planning News

A number of annuity holders may be due redress if they were mis-sold a standard annuity when they could have got a higher income from an enhanced deal.

As part of a review of non-advised sales, regulator the Financial Conduct Authority (FCA) has discovered that at a small number of firms, communication failures led to customers purchasing standard annuities when they could have got a higher income from an enhanced deal.

Enhanced annuities pay a higher level of income to people that have lifestyles or health conditions that mean they are likely to have a reduced life expectancy.

The FCA says these failures were most likely to have happened when discussions took place over the phone. In particular, it expressed concern that call-handlers were too reliant on scripts and did not always highlight the benefits of shopping around.

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