Tesco is planning to add a pensions annuity service to its existing Tesco Compare price comparison website.
The service will enable pension savers that are approaching retirement to shop around for the annuity that pays the highest income.
Tesco does not plan to sell own-brand products, but will introduce users to UK annuity providers through its Compare service.
A spokesperson from Tesco said: “Subject to regulatory approval, Tesco Compare plans to expand its price comparison site to include an annuity comparison service.
“Our application is currently with the regulator and we will update our customers in due course.”
We have been campaigning for years now for a more active shopping around market at retirement; we believe it should be the default for everyone, whereas at present only around 40% to 50% of retiring investors shop around for the best deal.
It is vital that everyone who can, makes sure they benefit from an enhanced annuity, as well as considering inflation proofing and death benefits for their dependents. The more high profile participants there are in the shopping around market, the more likely it is that this will happen.
PICA is developing a directory of shopping around intermediaries precisely because we anticipate that we will see more services being launched. Every little helps.