FCA director of long-term savings and pensions Nick Poyntz-Wright is urging pension providers to “take the initiative” in reforming the annuity market following the regulator’s damning investigation into the sector.
The FCA’s annuities thematic review, published last week, revealed 80 per cent of people could get a bigger retirement income if they shopped around.
The review also raised concerns about the lack of choice for people with pensions worth less than £5,000 and the potential for customers to be misled by annuity comparison websites.
Writing for Money Marketing, Poyntz-Wright says: “We will publish interim findings in six months, and aim to publish our final conclusions in a year’s time.
“But we don’t expect the industry to wait a year before considering how best it can serve its customers. There are some immediate things to consider in the comparison sites guidance, and there are some lessons to be learned by reading the thematic review.
“The best customer outcomes often happen when firms take the initiative rather than wait for the regulator to tell them how to change.”
See page 11 for our FCA annuities review coverage, and next week’s Money Marketing for Nick Poyntz-Wright’s full column