Pensions campaigner Ros Altmann is leading calls for a ban on automatic annuity purchases.
Altmann said the practice of providers converting savings into an annuity income for customers, then keeping the proceeds should contact with the customer be lost, should be "banned immediately". The income is often kept in a holding account until a policyholder gets in touch, but the provider will keep the cash if no claim is made. Descendants, though entitled to claim a relative's pension savings, cannot do so for annuity proceeds, Altmann said. "If there was no automatic annuity purchase the customer could always come along later and take their money out," Altmann, quoted in the Te...
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