Steve Webb: I just don't buy that annuities are good value

Jenna Towler
clock •

Pensions minister Steve Webb has continued his attack on the annuity market, saying the products are not good value and vowing to "shake up the market".

His comments follow an interview with the Telegraph where he mooted the idea of making it possible for consumers to switch annuity providers after initial purchase, in a similar way to the mortgage market. Speaking on Radio 5 live the minister said he was "trying to poke the annuity market with a big sharp stick". In an on-air debate with Webb, Hargreaves Lansdown head of pensions research Tom McPhail argued it was possible for consumers to get a good deal if they used shopping around mechanisms already in place but Webb argued government intervention was necessary. McPhail said: "...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

The problem with decumulation isn't withdrawal rates - it's platform plumbing

The problem with decumulation isn't withdrawal rates - it's platform plumbing

'It's time to think differently about sequencing risk'

Hugh Cutler
clock 08 October 2026 • 4 min read
Annuity rates reach 18-year high of 7.75% in July

Annuity rates reach 18-year high of 7.75% in July

Up from 7.66% in April

Sophia Panayi
clock 30 July 2026 • 2 min read
Enhanced annuities: Turning health realities into better retirement outcomes

Enhanced annuities: Turning health realities into better retirement outcomes

'Retirement planning is not about choosing one solution over another but finding the right balance between them'

Mike Batty
clock 20 July 2026 • 3 min read