The ABI has launched an online tool for illustrating the effect of charges on an individual member’s DC saving. It is available via TPAS at http://www.pensionsadvisoryservice.org.uk/pension-charges-calculator.
The tool accompanies the ABI’s Pension Charges Made Clear: Joint Industry Code of Conduct issued last November. The main target audience is firms advising employers on schemes for auto-enrolment but it applies more generally. It requires all charges to be presented clearly and accurately in a standardised format.
Until now, the code has had the status of best practice guidance. With the launch of the online tool it comes into full effect.
DC and annuities
In another step towards transparency, the ABI has begun to publish specimen annuity rates as part of its Code of Conduct on Retirement Choices that came into full effect in March.
The table shows rates offered by ABI members (only) for a specimen individual. It will develop to include a dozen annuitant profiles. But it does not function like a comparison site and it seems few insurers provide their rates to such sites.