What’s changing?

The implementation of the FCA Policy Statement 17/12 on 1 March 2018 creates an opportunity for advisers and means clients don’t need to settle for poor rates from a guaranteed income for life (GIfL) provided by an annuity.

Why does it matter?

Clients’ quotes will benefit from greater transparency as, assuming the client has given consent, all annuity providers must show how their proposed income compares with the best in the market on a like for like basis. The information prompt will be in a separate document to the quote itself.

Where a client hasn’t given consent, the firm must still point out that a better rate may be found elsewhere.

Should someone want to take advantage of a better rate, they can either turn to the Money Advice Service or an adviser to find out more information. 

What do advisers need to do?

Advisers should ensure their clients receive the information prompt to ensure they’re able to make a fully informed decision. This is an opportunity for advisers to explain the alternatives in the market and create a bespoke solution for their client. There may also be more new clients looking for help buying a GIfL.

PS17/12 aims to encourage more people to explore their options. Advisers can obtain the full range of income rates available by gathering their client’s health and lifestyle details on the Retirement Health Form.

Support from Just

PS17/12 is a significant development and we've created the following items to help you understand what it means for you, your business and your clients: