‘If it ain't broke, don't fix it' - this well known saying sums up all there is to say about the direction of the latest paper aimed at making the open market option work better.
Constant chatter about the failure of the open market option always seems to centre on differences in published market rates. Yet the truth is that these differences are wafer thin. If you don’t believe me then have a look at the FSA’s comparative tables yourself. Using the average annuity purchase price of £25,107 and applying it to a male single life level annuity gives a lowest rate of £142 per month and a highest £151. In percentage terms, this is a 6.3% spread. In pounds per week, £2.08. Add an RPI link and the differences almost evaporate. For the same annuity as above, but with a...
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