Tesco has announced that it is to launch a pension annuity comparison site, and has submitted a request to the regulator to obtain permission for this service.

The comparison site for annuities will be an extension of the supermarket’s Tesco Compare website, and will compare annuity products for pensioners looking to obtain the best possible rates for their retirement incomes.

Hargreaves Lansdown recently launched an online enhanced annuity search engine which is free to use and collects together rates from nine providers.

AWD Chase de Vere certified financial planner Patrick Connolly said: “The launch of annuity comparison sites from the likes of Hargreaves Lansdown and Tesco is positive if it helps to highlight the need for people to use the Open Market Option and means they are less likely to lock into uncompetitive annuity rates.

“However, once you buy an annuity that decision cannot be reversed and there is a real danger that those buying without advice will plump for the product paying them the highest level of initial income, unaware of whether this is really the most appropriate annuity for them. Locking into the wrong annuity, or even an inappropriate income drawdown product, could be a decision that they will regret for a very long time.”

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