Annuities

Complaints about annuities are continuing to rise more than a year after the Chancellor announced a reform of the retirement income market, according to the latest figures from the Financial Ombudsman Service (FOS).

Aegon has launched a ‘third-way' retirement income product on its platform which gives retirees access to drawdown with a guaranteed level of income.

The government should ensure a decent guaranteed income is the default option for defined contribution (DC) retirees, according to the Strategic Society Centre.

The government has delayed the launch of a secondary annuity market amid concerns about consumer protection, it has said in its Budget document out today.

The industry has welcomed the government's proposal to allow consumers to sell on their existing annuities but has clashed over whether advice should be mandatory for those wanting to sell.

New pensions minister Ros Altmann has said she is hopeful existing annuitants will get the opportunity to sell their right to an income for a lump sum.

The advantages of defined benefit (DB) pensions appear lost on some final salary savers who are frustrated by a government rule mandating they seek regulated advice before transferring out, research suggests.

Only 1% of savers have opted to cash in their pensions completely since the retirement 'freedom and choice' reforms took effect last month, according to the country's biggest retirement adviser.

Annuities have become the new focus for complaints according to figures from the Financial Ombudsman Service (FOS), a year after the product was publicly abandoned by the Chancellor.

... clients will call you about this week