Insurer acts as worries raised

Insurer Prudential has said it will review retirement annuities sold after July 2008, and make payouts to pensioners where necessary.

The move comes amid concerns that some customers may not have been given enough information about their deal.

Prudential’s review has been prompted by a probe into the wider industry by the Financial Conduct Authority (FCA).

It raised concerns that the way some deals were sold may have encouraged customers to buy a standard annuity when they could have been eligible for a product with

“Prudential’s review has been prompted by a probe”

a better rate. Prudential has agreed with the FCA to review annuities sold without advice after July 1, 2008 to its contractbased defined contribution pension customers.

The review will examine whether these customers were given enough information about the availability of, and their potential eligibility for, enhanced annuities, which may pay people with ill health, such as smokers, higher retirement incomes due to their shorter life expectancies.

Prudential will consider whether customers could have potentially received a higher income.

It said it would contact customers who may not have been given sufficient information and will provide redress, where appropriate.