Pension Providers Failing Savers

Pension providers are not offering their clients the best annuity option, and must improve the "disorderly" market, the Financial Conduct Authority has said

Emma Wall 14 February, 2014 | 4:40PM

The pensions market is "not working" according to the financial regulator. The Financial Conduct Authority review into the annuities market has concluded that the system is "disorderly" and pension savers are being failed by providers. 

Once you've bought an annuity you can't change your mind

The FCA found that the majority of workers do not exercise their open-market option when it comes to retirement, instead purchasing an annuity from the company they have accrued their pension pot with. But 80% of these savers could get a better retirement income if they shopped around.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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