A new initiative has been launched to encourage people to shop around for annuities.

Introduced by the Association of British Insurers (ABI), the change involves a compulsory code of practice for providers of retirement finance.

It means they can no longer include an annuity application form with other communications they send out to customers, which it is hoped will encourage Brits to shop around on the open market.

Furthermore, a greater amount of information regarding the matter will be made easily accessible to consumers by the ABI.

Mark Hoban, MP and financial secretary to the Treasury, said: "I welcome the ABI's announcement on how they are going to help people shop around for an annuity which will ensure that people get the most out of their retirement fund."

This comes after director at Better Retirement Group Billy Burrows told the FT Money Show podcast that many individuals failed to take advantage of favourable rates when converting their pension fund into an annuity earlier this year.

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