The Government will launch an advice website for consumers following the open market option (OMO) review.
Earlier this week the Government said in the Pre-Budget Report (PBR) it would encourage consumers to search the market for annuities.
The Pensions Advisory Service (TPAS) will set up a website giving consumers a step-by-step guide to shopping for annuities.
TPAS will involve stakeholders in the tool’s development and link it to the FSA’s comparative tables.
Mike O’Brien, Minister of State for Pensions Reform, says: What we’re trying to do is encourage people to go beyond just their own provider and start to look at the market as a whole and what the website will do is talk people through how to do that.”
However, he highlights the Government will not interfere with people’s financial decisions.
He says: “What Government can do is provide broad based encouragement and advice. You encourage people to look at the market but it’s a decision for people in the end if they want to do it.
“What we don’t want to do is force them to have it. The Government can encourage people to do things but we need to be a little cautious in terms of interfering in the market and to force people to do things that they otherwise might not want to do. In the end they have a choice and have the right to choose badly.”
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