Darren Philp, Director of Policy and Market Engagement at The Peoples Pension commented: "The FCA has missed a trick here to make a real difference to the pension outcomes of millions of people. Whilst the proposed solution will have some positive impact, it just doesn't go far enough and many consumers will still potentially miss out on thousands of pounds of future income by sleepwalking into an annuity that does not provide them with the best deal.
Simply giving consumers ever more information doesn't always work. We've been here before when it comes to the selling of annuities.
With an ageing population and an increasing cost of retirement, it is critical that consumers achieve the best possible outcomes if they are purchasing an annuity.”
Stephen Lowe, director at specialist financial services company Just Group, said: “We are disappointed with the FCA’s decision to prioritise controlling costs to businesses over providing a meaningful level of consumer protection. Previous FCA research has illustrated the improved value customers receive when they go through a full underwriting process and it is unconscionable for the regulator to disregard this knowledge when they are proposing to take steps to improve consumer outcomes in the retirement income market.
The rules have been built around the business model of the firm and fail to put the consumer at the heart of the solution. Detriment has moved from firm to consumer.
Hopefully many firms will implement standards beyond this low bar and do the right thing for their customers.”
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