A parliamentary select committee has called for government and regulators to make the Open Market Option ‘mandatory' at annuity purchase.
In Work and Pensions Committee- Sixth Report Improving governance and best practice in workplace pensions, MPs warned the industry is failing scheme members when they convert pension funds into annuities. The report said: Purchasing an annuity from a provider other than the one which holds an individual's fund could increase their retirement income by as much as 20% to 40%. However many people are unaware that they have the option to shop around for an annuity." However, MPs recognised the financial services industry's move to improve take-up of the OMO. The report welcomed the introd...
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