The regulator has raised concerns about shrinking competition in the retirement income market post-pension freedoms, warning the problem could get worse still.
The Financial Conduct Authority (FCA) said in its Sector View paper out on 18 April the lines between pension accumulation and decumulation had become increasingly blurred, which posed a challenge for new entrants into the market. "The blurring of the line between accumulation and decumulation means there is no single trigger point for challengers to target potential customers," the FCA warned. According to the FCA only a handful of workplace and pension providers currently dominate the decumulation market. Of the 17 providers offering annuities it found the top five had a 68% share o...
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