We believe there is scope for innovation in five key areas that could create greater choice, efficiency and transparency for at-retirement decisions:
1) From index providers: annuity reference benchmarks so open-market quoted rates can be presented relative to a transparent and consistent benchmark;
2) From asset managers: designing the investment and administration capacity for collective drawdown schemes as an alternative to annuities;
3) From providers and/or investment banks: fixed-term non-life portable guaranteed income products as an alternative to life-assured annuities;
4) From annuity brokers: standardised and consistent fee presentation;
5) From legislators and regulators: review of legislation to ensure any such improvements can be accommodated.
Any parties wishing to participate in some much-needed creativity in this area are invited to contact us to join an industry-led initiative.