27/01/2012 - RDR Will Damage OMO Annuity Advice
RDR Will Damage OMO Annuity Advice.
Last September, Andrew Megson, Partnership managing director of retirement warned that the RDR will cause “significant consumer harm” as IFA numbers drop and fewer people with small pension pots will be able to access advice.
Research from Partnership suggests less than 50% of annuitants who have shopped around for a retirement product know what an annuity is and 75% of those who choose an enhanced annuity do so because it is recommended by their adviser.
According to outgoing Aifa director general Stephen Gay, advice is becoming less available and the RDR will make that situation worse. People who do take advice, most of the time end up utilising the open market option, which on average will lead to a 20% increase in their annuity payment.
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