Gregg McClymont MP, Labour's Shadow Pensions Minister, commenting on IFS research showing that one third of those approaching retirement are unsure how much income they will receive from their private pensions, said:
“The IFS report is a wake up call on defined contribution pensions. The IFS confirms the need for radical reform in the annuities market that determines pensioner retirement income. There is too little competition in annuities and pensioners are not encouraged to shop around for the best deal when they come to turn their pension pot into an annual income.
“The result is many pensioners retiring on a much lower income than they deserve. Annuities must be made simple and transparent if we are to create pensions people can trust. This reform is crucial if defined contribution pensions are to work.”