“When it comes to retirement a significant proportion of over-40s just want to feel that have made the most of what they have got (24%) and fully understand their choices (20%). Today’s Market Study Proposals are a small step towards ensuring that this is possible and that more customers are in a position to take the most appropriate action for their situation.
“We are particularly pleased that the value annuities hold for people with average-sized pension pots and low risk appetite has been highlighted. With enhanced annuities paying the typical 65-year old an average annual income of around 6.5%, those who are eligible will be able to get even more value from their pension pot. It also clearly highlight just how important it is that people are offered the option of applying for an enhanced annuity if they do decide to choose a guaranteed income for life.
“As a founder member of PICA, we are particularly pleased that the Pensions Dashboard – a concept that the organisation has championed – has been included. Allowing people to view all their pension information together will not only ensure that they can make informed decisions but will also encourage them to take a considered look at all their options at retirement.
“Perhaps – most importantly – it will also facilitate shopping around to ensure that they make the most of their retirement savings. Too often people simply take what is offered by their existing provider as they perceive it to be easier and not overly detrimental to their finances. Today’s announcement will encourage people to engage and achieve the retirement income they deserve by making their pension savings more tangible and visible.”
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