FSA Panel stress concerns due to complexity of Pension Annuity choices

New-style annuities are aimed at those who want to take some investment risk in return for a potentially higher income.However, there are fears they are too expensive and many people do not understand the risks. the Financial Services Consumer Panel has been expressing concern.

With low interest rates and with people living longer annuity rates have fallen dramatically in the last few years. Consumers when faced with the choice may be tempted to take a greater risk with their pension without fully understanding the risks.

This is one area where expert advice and guidance from a qualified specialist is required. Seek out an IFA who specialises in this aspect of personal finance ( they will have to have certain permissions from the FSA to advise on Pension Annuities).
Independent Advice from an IFA will ensure that all of the options and choices are explained to you.