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ABI responds to comments by Pensions Minister Steve Webb in the Sunday Telegraph

Responding to an interview given by Pensions Minister Steve Webb in the Sunday Telegraph, Huw Evans, Director of Policy, Association of British Insurers said:

"Purchasing an annuity guarantees someone an income for life from their savings. It is calculated based on a number of factors including life expectancy, so it is not as straightforward as a fixed term mortgage calculation. Many people welcome the certainty an annuity gives them although there are other ways they can choose to take their pension.

"The industry has already launched a review - A New Retirement - to explore changes that could be made to help people get good outcomes in retirement, including how to balance security and flexibility. Whatever the decision people make it is a crucial one and they need help to get it right. The Minister acknowledges that the changes he is proposing could have a 'massive' impact on the way the market operates. Some of these changes could be negative and some positive but it is important that they are well thought through. The industry is keen to contribute fully to the thinking on how we can make the retirement income system work better for savers.

"The industry has gone further than regulators and the government demand in making the difference between rates offered by companies more transparent and helping people understand the benefits of shopping around."

Last updated 01/07/2016