LCP calls for unadvised mass market default switch to annuities

Best of both worlds for retirees

clock • 4 min read

A ‘flex first, fix later’ pension that would switch to annuities when retirees are in their late 70s early 80s would combine flexibilities and guaranteed income in a way that could help people have better retirement outcomes, according to Lane Clark & Peacock (LCP).

The consultancy's report said this type of pension could be introduced as the unadvised, mass market default post-retirement option for workplace pension savers. It would start as regular drawdown but have a built-in switch to an annuity at a later age without further action by the policyholder but they can still opt out at any time. Speaking on an LCP webinar on 7 September to introduce the findings of the research, the firm's head of defined contribution (DC) and partner Laura Myers (pictured) said: "When we look at the UK DC market, we've seen lots of innovation and legislative suppor...

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