FSA to investigate £11bn annuity market

The Daily Telegraph reports the watchdog is to launch an inquiry into the value pensioners receive when buying an annuity with their pension pot. Reports indicate the FSA's probe of the £11bn annuity market will examine the pricing of annuities and how they are advertised to savers. Politicials and industry groups have raised concerns about the failure to use the open market option (OMO), where consumers shop around for an annuity instead of taking the rate automatically offered to them by their pension provider. The first phase of the investigation will focus on pricing. Phase tw...