09 Feb SimplyBiz Chairman Claims Annuity Market Reform Needed
SimplyBiz chairman Ken Davy has claimed that the annuity market is in serious need of reform, with the market posing a greater danger to consumers than the one that are being addressed by the upcoming retail distribution review.
Davy is now urging regulators to look into the issue in an effort to assure that all those who purchase annuity are given access to independent advice and he has announced that he will appeal to the FSA for reform.
He commented "For far too long too many people who have saved diligently for their retirement have been short changed when it comes to their choice of annuity,' he said. 'All too often they simply tick the box on the form their pension provider sends them without any thought or guidance that they could almost certainly get a bigger annuity elsewhere. This cost to consumers is many times greater than the entire consumer detriment being addressed by the RDR.
"This issue has been recognised as an injustice for years and I cannot understand why it is still unresolved. Surely it is not rocket science for either the government or regulator to deliver a simple solution which will ensure that consumers have a genuine opportunity to obtain the best possible value from their retirement savings."