“We welcome the FCA’s market study as this is a step closer to ensuring that consumers receive the best deal possible for their situation. For the vast majority of people living their everyday lives, pensions are a minor – somewhat confusing – consideration but, one that they are expected to become experts in when they wish to retire. Indeed, such experts that they can make potentially life altering decisions.
“Providing people with more intuitive information in the run up to retirement, simple to understand annuity comparisons and eventually access to a pensions dashboard will go a long way towards creating engaged empowered consumers who are able to shop around with confidence. We know that shopping around is ultimately the only way that people can not only receive the best deal but be sure they are doing so.
“That said, there are potentially some issues that the FCA and the industry will have to work through as they look to enact the suggested remedies. As an enhanced annuity provider, one that springs to mind is the quality of the medical and lifestyle data that will be used to develop the annuity comparison. Someone with type-two diabetes managed by diet could receive a very different quote to someone who manages this condition with insulin – but both would answer yes to the question, do you have diabetes.
“In addition, with the new pension freedoms providing people with a range of solutions, it may prove difficult to compare like for like. However, these are all issues that if identified and worked through will ultimately provide consumers with better retirement outcomes. We look forward to working with the FCA and other members of the industry to ensure that this happens.”
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