It is understood that various firms are linking up and forming a trade body to promote a greater range of retirement planning and annuity options to consumers. These firms include MGM Advantage and Living Time, as well as Partnership Assurance, LV=, Canada Life and leading independent financial advisers (IFA’s) Hargreaves Lansdown.
The group, which so far remains unnamed, is developing a manifesto for change that aims to ensure consumers nearing retirement understand the different options readily available to them and that they exercise their right to shop around for the best annuity rates. These founding firms are undersood to make up the management board of the new trade body, which is designed to complement the work being done by the Association of British Insurers (ABI).
A wider group of insurers, adviser firms and some consumer groups such as Which? will be invited to join the advisory board in the next few weeks, and they will contribute to the trade body’s work. It is further understood that the group is going to model itself on Safe Home Income Plans (Ship). Like Ship, its members will have to subscribe to and follow certain standards in order to participate. The trade body will be properly funded by its membership. Hargreaves Lansdown’s Tom McPhail is believed to be acting chairman, with a permanent chairman expected to be announced in due course.
Their manifesto will go to the advisory board for consultation sometime in August before the group begins to lobby to try to influence the political parties’ policies. A spokesperson from Just Retirement commented that they (Just Retirement) are committed to improving the general awareness of the OMO, and therefore welcome any industry-led initiatives that try to help this situation.
Retirement Adviser’s Nick Flynn says that this sounds excellent. He added that the more publicity and coverage the open market option gets, the better it is for both advisers and retirees, and it would be good for them to widen the net in terms of insurers because there are some significant players not included in this original list but this is definitely a promoising start.
