L&G: Forcing OMO 'counterproductive'

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Making shopping around for an annuity the default option for all investors will be "counterproductive", Legal and General (L&G) warned.

Its comments come after the Pensions Income Choice Association (PICA) called for the provision of a default annuity option in communications to at-retirement investors to be removed. Instead, PICA said people about to purchase an annuity should be sent a "pension passport" to help them access the Open Market Option (OMO). This move, PICA said, could help pensioners generate up to an extra £7bn in retirement income. However, Tim Gosden, head of annuity product development at L&G, said for some investors it is inappropriate to remove the default option from communications with invest...

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