"It is absolutely vital that customers making such a key financial decision, which will determine their level of income in retirement and cannot be reversed, have all the information and help they need to reach the right decision for them. By shopping around, getting advice and making sure they disclose any medical conditions, they can not only secure the highest rates but also shape their own annuity to include spouse benefits or guarantees, making the most of their pension pots in retirement.
"We have wholeheartedly embraced the principles of the ABI code of conduct and the efforts to enhance transparency, increase customer choice and ensure that those retiring can maximise their income."
Nationwide's annuity service is available on an advised or non-advised basis and outlines customers' financial options in retirement and supports them throughout the application process.
It provides access through The Open Market Annuity Service to a panel of leading annuity providers, carefully chosen and regularly reviewed by Nationwide on the basis of their financial strength, customer service and competitive rates. There are currently six on the panel: Aviva, Canada Life, Just Retirement, Legal & General, LV=, and Partnership.
Notes to Editors:
(1) The average uplift figure of 17% is based on information regarding customers who have purchased an annuity through the Nationwide Annuity Service between March 5th 2012 and the end of January 22nd 2013. A 16.87% average increase in the annuity offered was achieved compared with the customer's own pension company annuity offer. Source: The Open Market Annuity Service Feb 2013.(2) Source: Office for National Statistics (ONS) 2011. The average length of time a person aged 65 is expected to live is 19 years, 18 years for a man and 20 years for a woman.(3) Figures from Nationwide's Open Market Annuity Service show that from launch to January 2013, 51.3% of annuities have been offered on an enhanced basis, while 48.7% were offered on a conventional basis.(4) Figures from National Association of Pension Funds (NAPF) report February 2012, which states the number of people who are thought to qualify for an enhanced rate should be in the order of 40-60%. Whilst the market appears to be rapidly growing, at present approximate 25% of OMO sales are actually secured at an enhanced rate. Only 1%-5% of sales made by the ceding pension scheme providers to their existing customers who do not opt to shop around are offered on an enhanced basis.
About Nationwide Building Society
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.
Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 15,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.