On the Just website, it states: “However, after discussing this with pension providers, industry regulators and consumer groups, the government felt there would not be enough companies willing to purchase annuities to create a competitive market. Simply put, it seemed unlikely that there was enough competition in the market for customers wanting to sell their annuities.
“This meant they could not guarantee customers would get good value for money, and as a result were concerned that customers could be at risk.”
The fact annuity purchases have remained at a certain level suggests there is still a need for these types of retirement income products, particularly as at the same time average life expectancy has gone up.
The Iress Retirement Report reveals the number of Britons reaching the age of 100 has quadrupled in the last 30 years, according to the Office for National Statistics.
Mr Pennie notes: “There hasn’t been much good news for annuities since the launch of pension freedoms but they remain the most effective vehicle for secure lifetime income and therefore still have an active part to play in the retirement income landscape.”
eleanor.duncan@ft.com
