Why the FCA's piecemeal action could push people back towards annuities

Will the Financial Conduct Authority's investigation of the annuities market never end? Even today's market study, and accompanying review of sales practices, will preface further work – by providers this time.

This will be to determine whether savers with certain lifestyles or medical conditions lost out through purchasing a standard annuity rather than an enhanced annuity, or through not shopping around. Providers are being asked to check their own homework on questions we know the answers to (yes and yes).

This widespread investigation of what is going wrong with the annuity market could, conversely, give the market a boost at a time when it is under the most scrutiny. One of the watchdog's main conclusions, in their words:

Source: The FCA's market study

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