Pensions - Articles - Just Retirment comments on FCA annuity reports

 “This study reinforces the view of a ‘two-tier’ retirement income market. Those people who engaged with the decision-making process and made informed decisions, shopped around and chose good value solutions. However, the majority simply trusted their pension provider to see them right and ended up in poor value products as a result.

  

 The report won’t be a surprise to anyone in the industry. Many of us have campaigned to encourage engagement and shopping around but there simply hasn’t been the industry will or regulatory pressure needed to ensure providers treat consumers fairly. We support the FCA’s moves to improve communications and regulatory oversight. With the April reforms set to deliver more options to retirees, it is crucial that they are encouraged to make active, informed decisions and appropriate measures to ensure those that fail to engage are protected rather than abandoned.

  

 Some providers have got away with selling poor value and inappropriate annuities to a captive market for far too long. Unfortunately their selfish actions have tainted the whole annuity market, undermining confidence in both good and bad. Yet guaranteed lifetime income should be the firm foundation on which all retirement planning is based because it is the only way to be sure the income will continue flowing for as long as it is needed. In the new pensions era, we need to keep working to make sure that basic fact doesn’t get forgotten.”