FSA finds pension providers flouting rules
FSA tells firms to record callsBut the FSA document shows that the difference in final pension pay-outs can be significant: its review uncovered a gap of around 20 percent between the top and bottom annuity rates, with just over half of providers' rates within 10 percent of the cheapest rates available.
"There is still significant potential for customers to achieve higher incomes by exercising their option to shop around," Wilson says in the document, urging insurers to review their literature.
Commenting on the findings, Nigel Callaghan, a pensions analyst at independent financial services provider Hargreaves Lansdown, said: "Enough is enough. These investors have been saving with the insurance companies for 20 or 30 years.
"The least they should expect is to be treated fairly: offering them such poor value at a point in life when they can least afford it does the industry a huge disservice."
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