New pension flexibilities could be ‘detrimental’: OECD

Mr Boyd added: “Given the value that the OECD place on annuitisation, it is critical the language of the government doesn’t demonise annuities - certainly at the onset the chancellor’s annuity statements were very negative.”

Tom McPhail, head of pensions research at Hargreaves Lansdown, added: “We know for a lot of people an annuity is still an important element of retirement income and whilst the pension reforms are welcome for most people, a blended approach will be the right way to go.”

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Pensions expert Ros Altmann said: “The case for deferred annuities is stronger than regular annuities, but it depends on the cost of the deferred annuities which is something that these reports are ignoring.”

At a recent panel debate, experts warned that the radical retirement reforms will inevitably mean consumers are not adequately protected or informed, leading to “bad outcomes” in the short term.