The Government is planning to set up a taskforce examining retirement income focusing on issues around annuities and decumulation, Money Marketing understands.
A senior source at the Department for Work and Pensions says a review is needed as changing lifestyles require different retirement solutions.
The DWP has already looked into annuity shopping around and the open market option but this taskforce will undertake a more detailed examination of retirement income options.
A senior source says: “We need an annuities taskforce and we need to take a proper look at decumulation as it is an area we have not got around to yet.”
The FCA is already conducting a thematic review of annuities with the paper due to published soon. The regulator could conduct a market review of the sector depending on the outcome.
Aviva head of pensions policy John Lawson says: “The Government is concerned people will not have enough income in retirement for their assets so it would be a welcome review of how to take your money at retirement. There will be an awful lot of possibilities to examine for retirement options.”