Saga director general Ros Altmann is calling for an end to default annuities as part of a wider charter for annuities that will push for increased uptake of the open market option.
Speaking to Money Marketing, Altmann says: “We will be calling for an end to default annuities because the market clearly is not working. Every week, another 10,000 people buy an annuity and lock themselves in for life.”
In the Treasury’s consultation on removing the age 75 rule, the Government made clear it wants uptake of the open market option to increase and is willing to consider legislation if rates do not improve.
Saga’s charter is still in development but will include calls for standardised forms and terminology.