Aviva’s Rethinking Retirement report sets out new initiatives that Aviva believes will help consumers to manage their increasingly complex finances and make the retirement market fit for purpose
The Insurer has called on all providers and advisers to give customers a ‘clear menu’ of their services and associated costs across all forms of annuity sales to allow ‘like for like’ comparisons.
Aviva said this level of clarity would mean customers can then understand if they are paying competitive costs for the appropriate level of advice according to their individual needs.
Clive Bolton, managing director of Aviva’s At Retirement business, said: “Aviva is committed to leading by example and we believe everyone – retirement providers, government, regulators, advisers and individuals alike – should take responsibility to act on these ideas and help to provide financial security and peace of mind for current and future retirees.
“This approach rests on the desire to ensure that people receive an appropriate level of advice to suit their individual circumstances and they fully understand the type of help they are getting.
“Therefore, we call on the industry to ensure non-advised annuity sales meet the same cost transparency standards as advised sales.”
The Rethinking Retirement report also endorses the Equity Release Council’s call for the government to define departmental ownership of equity release as an overarching issue.
Nigel Waterson, chairman of the Equity Release Council, said: “We are delighted that Aviva has chosen to endorse the Council’s call for the Government to define departmental ownership of equity release as part of its Rethinking Retirement Report.
“This common sense move is vital to help consumers make the best use of all their assets in retirement and would be a great step forward.
“This type of official state recognition would go a long way to dispelling the myths that continue to dog the industry and help older consumers to feel more comfortable accessing the value in their homes.
“We urge the Government to listen to the industry and take positive steps to ensure that this does happen.”