Aviva says providers should be forced to publish their annuity rates to make it easier to compare annuities across the market.
In a report, Rethinking Retirement in the UK, published last week, Aviva proposes changes which it says will tackle issues facing the annuity market.
It says greater transparency on annuity rates is needed whether firms offer an open market or closed solution.
It proposes a requirement for providers to highlight the best market rates to people nearing retirement when the annuity they are being offered is 10 per cent less than the best rates available in the market. It says the FSA should create a new retirement adviser “badge” to indicate to customers that their adviser can address all their financial needs and press ahead with the development of simplified advice.
Aviva says switching costs must be reduced and legislation should be introduced to allow the automatic transfer of small auto-enrolled pension pots so savings pots follow members when they move jobs. It also says medical questionnaires should be included in maturity packs.
Aviva at retirement director Clive Bolton says: “Consumers face a different landscape to their predecessors and we must take practical steps to help maximise their income and make the choices that are right for them.”