The current rules and regulations surrounding retirement income are ‘not fit for purpose' according to the ABI.
In its latest paper, 'Time for Change: Seven proposals to improve DC pension benefits in retirement', the lobby group also called for increased income allowances for alternatively secured pensions (ASP).
ABI acting director general Maggie Craig says the changing pensions landscape, with retired people living longer and becoming increasingly reliant on defined contribution (DC) pensions, means the rules surrounding retirement income are out of date.
The ABI has made a number of major proposals to increase retirement income and make the market more flexible.
As well as demanding an increase in the age at which people must buy an annuity or begin using ASP - from age 75 to 80 - the ABI also wants a higher limit on ASP incomes.
It has also called for more ‘value protected' annuities and for the Government to address the issue of stranded pots by harmonising rules for occupational and contract-based DC schemes.
"The savings industry is keen to rise to the challenge and meet the needs of Britain's savers," says Craig.
"Our proposals would make a real difference and help ensure people retiring from DC schemes get the most from their savings."
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