He offered no solution or practical advice, but merely said that he wanted to look at why people bought annuities from the same pension provider, and how this could change.
I could sympathise with these comments more if people were not given an FCA factsheet explaining the Open Market Option when reaching retirement age by the provider, or if we lived in a world where competition was not allowed, but we do not. Different firms offer different annuity rates, and unless the FCA identifies a cartel, what more can they do?
They seem also to be having a poke at some execution-only comparison services that charge for finding the best deal and processing the application.
The biggest and most insulting omission from Mr Wheatley was that not once did he mention or promote the benefits of using an IFA, who would provide advice and set out other options. (Yes Mr Wheatley, you forgot to mention that some may prefer going into drawdown).
Then I felt quite silly and forgave him for this, as why would he, in terms of his own retirement planning, ever think about using an IFA?
The answer is, of course, that through our annual contributions to his employer, we have helped fund a generous, index-linked final salary scheme for him to enjoy when he retires.
Dan Farrow
Director
Sbn Wealth Management
Chelmsford
Essex
