Lack of shopping around for both drawdown and annuity products is firmly entrenched in the retirement income market, according to analysis of FCA data by provider Retirement Advantage.
The latest Financial Conduct Authority (FCA) bulletin revealed more than half (58%) of drawdown customers used their existing provider, while 57% of annuity purchases were made by existing customers. These numbers have been consistent since October 2015 when the FCA started reporting data. The bulletin also revealed nearly half (48%) of advised clients were unaware their defined contribution pensions had charges, while one-in-nine (11%) said they were only aware some of their schemes had charges. Retirement Advantage pensions technical director Andrew Tully said: "The lack of advice ...
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