For those interested in using their pension saving funds to invest in an annuity, the annuity market has several different options – both in terms of products as well as providers. An annuity once purchased cannot be reversed, so it is strongly recommended that you shop around and explore the open market before making a decision. There are a number of resources and tools available today to help people understand the annuity market. Many people also consult Annuity Advisers for guidance and advice.

Independent financial advisers and financial experts can offer impartial guidance and help you understand different options that may be available to you. They could help you understand your own financial needs, particularly future needs, and help you make the right decision that can serve you well over the long term.

In general, annuity advisors and independent financial advisors tend to err on the side of caution and suggest options that are safer rather than riskier alternatives. This is because of two main reasons.

The first reason is that annuity advisors and financial advisors have been trained to be cautious and to play it safe when it comes to their clients. After all, it is their job to help people make sound financial decisions that can pay off in the long term. It is not their job to help their clients take unnecessary risks and gamble their long term financial security on potentially unsafe investments.

The second reason is also related to this. The fact is that financial advice is a tricky area. The position of annuity advisors and independent financial advisors is one of great responsibility. Giving the wrong advice or advising a client to take an unnecessary risk without fully explaining the consequences is akin to professional suicide on the part of the advisor.

The fact is that they have to be cautious and this is because the wrong advice could result in them getting sued. If a client feels that they have received wrong advice from their annuity advisors or independent financial advisors, and have suffered damages as a result of this advice, they can in fact sue the individual advisor or their company.

In fact, the Financial Conduct Authority protects customers and could even offer compensation to the client through the Financial Services Compensation Scheme for the wrongdoings of annuity advisors and IFAs. The FSCS is a last port of call for customers of authorised financial services firms.