Reform of the Open Market Option would boost government coffers by £1.7bn over 20 years and should form part of all political manifestos, a lobby group says.
Since 2002, insurance companies have been required to disclose investors' right to shop around for an annuity via the OMO. However, the Pensions Income Choice Association said efforts by the Financial Services Authority and the department for work and pensions to improve the take-up rate had failed. The lobby group claimed making the OMO part of the default retirement process would boost pensioner income by at least £3.3bn over the next 20 years, with tax revenues improving by £1.7bn over the same period. PICA chairman and Hargreaves Lansdown head of pensions research McPhail says the...
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