Cash point

Pension firms will be forced to tell those cashing in savings that they could get a better deal elsewhere. The Financial Conduct Authority is bringing in new rules in March 2018 whereby companies have to show clients how much money they may miss out on if they don’t compare the market. It’s a step in the right direction – 50,000 people don’t shop around each year and get lower incomes – but pension experts believe it doesn’t go far enough. Andrew Tully, of Retirement Advantage, said: “Any attempt to encourage more people to get better value from their retirement savings is positive. However, the monetary figures will simply show a comparison of standard annuity rates and won’t show the additional money people could receive through enhanced annuities.” Double-check whether you qualify for an enhanced annuity (lifetime income). They can boost incomes by up to 40% for smokers and those with certain medical conditions that insurers feel may have a shorter life expectancy.