We have published the findings of our thematic review of annuities.
Making the right decision when purchasing an annuity is particularly important, as it is usually irreversible and affects a consumer’s income for the rest of their lives.
This paper is directed at firms selling annuities and those who have existing defined contributions pension customers, their representatives and consumer representative groups. Individual consumers may also find the results of interest.
We started our thematic review in January 2013 and we:
Overall our results indicate that some parts of the annuities market are not working well for some consumers.
We found that eight out of ten consumers who purchase their annuity from their existing provider could get a better deal on the open market.
Based on this review, we believe that it is appropriate for us to undertake a competition market study into retirement income.
Market studies are our new main tool for examining competition issues in the markets we regulate − they allow us to look more broadly at a market to analyse how competition works today, and how it might develop. The results of the thematic review have been used in developing the scope of the market study, and will inform that ongoing work.
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