The ABI is believed to be facing an uphill struggle to develop a manageable decision tree for annuities because of the multitude of options currently available.
It is working on a standard model for annuity purchase but is believed to be banking on simplification from the Pickering and Inland Revenue reviews to help streamline the outcome.
The ABI has set up a special working party to look at standardising annuities. The Treasury gave its tacit backing to a standard approach at a meeting with the industry in April.
The ABI is understood to have at least 12 major providers committed to designing the model, which it hopes will result in better-value annuities for the lower end of the market.
But plans could still see consumers faced with a vast array of quotation options at retirement such as single life, joint life, spouse's pensions and index-linking annuities.
The Inland Revenue and the Department for Work and Pensions are understood to be looking at whether annuities can be transferred to a different basis with the same provider after the industry rejected initial proposals to allow transfers to another office.
Standard Life senior technical manager John Lawson says: “It is a fairly complex process to get a decision tree in this regulatory framework because of the different types of pensions and tax-free cash limits available. There is such a wide range that it might be worth waiting for the Revenue and Pickering.”
ABI spokeswoman Emma Grainge says: “It is still too soon to discuss specifics. It has been a lengthy process and we should have more news in a month or so. A lot of work is going on and we are aware of the different reviews going on.”