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UK FCA publishes interim report on pensions

by on December 12, 2014

The UK  Financial Conduct Authority (FCA) has published its interim report on annuity sales practices and retirement income.  This comes in the wake of widespread reform that has impacted UK pensions and pensioners.  The BBC states that the report found “most consumers were missing out on a higher income from their annuity because they did not shop around”  There had been some speculation that the report would identify possible miss-selling but the FCA did not go that far.  Included in the recommendations however was the idea of a ‘pensions dashboard’ to replace the reams of paperwork currently sent out by pension providers in the months leading up to the specified retirement date of the plan.

There was a mixed reaction to the report, which was obviously welcomed by pension companies who had been fearful of accusations of mis-selling.  However Reuters said “Ros Altmann accused the FCA of dragging its feet. “I am struck by the lack of urgency with which the FCA is tackling the problems,” she said.” Ros Altmann is the UK Government’s Business Champion for Older Workers.

As the Guardian outlined “Around 353,000 people were buying annuities every year in a market worth £12bn in 2013, according to the Association of British Insurers, but the numbers are falling fast now that pensioners will no longer be forced into buying one from April 2015”.  Further news is expected this afternoon when the Government announces the interest rates for a special series of bonds available to those age 65+., as announced on Radio 4’s today programme this morning.

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