Pension providers should ensure all retirees use the open market to buy an annuity at the point of decumulation to ensure they get the most out of their savings, Just Retirement has said.
The provider said there should be a "clear divide" between the accumulation and decumulation market to ensure people do not remain with their pension provider through inertia and end up with a poorer deal. The suggestion comes after the Financial Conduct Authority's (FCA) market study which said the annuity market was not working for retirees. Yesterday the regulator asked annuity providers to look into their non-advised sales going back to 2008 to see if consumers missed out on higher income by buying the wrong type of annuity. However, it stopped short of demanding a full review...
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