The Financial Conduct Authority (FCA) has said it will establish a comparison tool, as one of several measures aimed at ensuring the annuities market is fair to consumers.
The regulator's commitment to creating the tool comes after last week's release of the consultation paper around proposed rules and guidance for the second-hand annuity market.
This comparison tool will help customers shop around in a market in which the products are notoriously hard to value.
Maggie Craig, head of pension's policy, said: "Consumers can easily compare the value of any big purchase such as a house or a car and we want to make it as easy as possible for them to value their annuity in the same way."
The comparison tool will act as a baseline and the regulator wants people to shop around on the basis of this. The regulator expects the measure will help it "provide appropriate consumer protection while promoting effective competition in the interests of the consumer" - one of the commitments made in today's paper.
Craig went on to make a commitment to monitor the market and "take action" where the FCA may have cause for concern. There will also be risk warnings, as there are in the primary market, as well as a 14-day stop period.
Asked about the viability of the market, Craig said she expected there would be approximately 30 buyers with 10 to12 firms involved in the buyback process.
HM Revenue & Customs outlined its position on taxation yesterday and has predicted about 300,000 people will sell their regular retirement incomes.
While it is already technically possible to sell an annuity, such a course of action comes with harsh tax consequences. The government has confirmed it will change the tax position on annuity sales so they are no longer an unauthorised payment.
