FSA launches online pension table

Retired people looking to use their private pension to purchase an annuity, or income for life, can now compare the rates paid by insurance firms online.

The website of the city watchdog the Financial Services Authority (FSA) will from now on carry a list of annuity rates paid in a bid to encourage consumers to shop around under the 'open market option'.

The open market option gives consumers the freedom to choose whether to buy an annuity from their existing pension provider or to find the firm offering the best rate.

Consumers key in their details such as the actual size of their pension pot, their exact age and the type of annuity they would like.

A table will then be produced showing consumers how much monthly income their pension pot could buy them.