Saga says it has no plans to end its single-tied annuity service despite its continued campaigning for increased uptake of the open market option.
The tied direct sales service with Legal and General has been running for over a year and a Saga spokesman says there is “no indication the tied service is going to end”.
Saga director general Ros Altmann says offering annuities from multiple providers would be more likely to stop customers looking elsewhere for the best deal from across the market.
She says: “We are not in the business of shopping around for customers who have not come to us for advice and they will be much less likely to shop around if we offer products from a number of companies.”
Last week, Money Marketing revealed that Saga is working on a charter that calls for an end to default annuities, which Altmann says would force people to shop around for the best annuity.
Pensions Transfer Solutions managing director Carl Melvin says: “If you are going to espouse issues like this, your behaviour must be in line with what you are saying, otherwise people are going to accuse you of being hypocritical, with good reason.”