The Consumer Panel says there is a risk that regulators may not take a holistic approach to the decumulation sector and highlighted concerns over third way products.
It raised concerns over the ability of advisers to deal with the growing complexity of third way products and also warned of the misselling potential of structured products.
The provision of information, guidance and advice where there is a question about the capability of older individuals to understand the implications of the decisions that they might/might not take was also highlighted.
Panel chairman Adam Phillips says: “It is crucial that people who have worked hard to save for their retirement are able to get appropriate advice and buy financial products which are value for money to sustain them into old age.
“We will use the findings of this report to focus our work and to engage in constructive dialogue with the FSA and organisations working with people in later life.”