People are to be given more encouragement to shop around for an annuity to suit them, under new rules.
The Association of British Insurers (ABI) has launched a consultation to find out 'what more the industry can do to help people make good choices when they retire'.
The ABI says that under the current system, people are missing out on thousands of pounds through their retirement.
Under the code, members must remove the annuity application from communications to customers so that they cannot simply roll their pension over.
However, the ABI is looking to take the initiative further and is consulting on a draft of a new code of conduct that would see all communication with customers include a standard statement on the first page about the benefits of shopping around.
Under the proposals:
"We have worked very hard with our member firms to encourage more people to shop around at retirement, but there are still too many people who choose not to," said Maggie Craig, director of life and savings at the ABI.
"They could be missing out on thousands of pounds of retirement income as a result. We want to do everything we can to help people get a good income in retirement which is why we are asking for views on the code we plan to introduce.
"Since 2009 the number of people buying an annuity from a different provider has increased from 36% to 44% which is encouraging, but there are still a third of people who choose not to shop around."
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