Thanks to an innovative ABI scheme called ‘Options’ it is now much faster for consumers to switch pension providers or buy an annuity from the Open market. Choosing an annuity provider is a very important decision that can only be made once. At the ABI we are working hard to simplify the system and better inform consumers. The ABI are constantly underlining the importance of people shopping around before buying their annuity. In 2008 it took, on average, 31 days for a pension pot to move from one provider to the other.  A year ago ‘Options’ was established to bring down that time and we are now seeing very positive changes as a result. Last year transfer times were reduced to an average of just 11days, three times faster than the previous in 2008. The new faster process makes it easier than ever for consumers to switch providers.

With more companies due to sign up to Options in 2010, even more consumers can look forward to faster transfer times. Last year saw rapid improvements in the length of time taken to switch providers, and it is now our priority to extend the much improved service to as many people as possible.

Tags: abi, association of british insurers, pensions, retirement, saving