Trust-based defined contribution schemes are still not doing enough to help members shop around for the best annuity, say Buzz contributors.
Respondents said, by a margin of two to one, that schemes were failing to adequately promote the open market option for retirees.
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Question: Are trust-based DC schemes doing enough to encourage members to 'shop around' for an annuity?
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"It should be a matter of course that this is done but ignorance and complacency rule," said one contributor. "It is a swings and roundabouts situation for the providers but could mean several thousands of pounds difference to the pension payout."
But another respondent who thought schemes weren't doing enough was uneasy with the idea of forcing them to act.
"Why doesn't TPR or the FSA sponsor advertisements in the media advising the public to shop around?" they suggested
But a significant minority thought schemes were doing enough to help members, or were under no obligation to do more.
"A lot of trust based schemes shop for the member," explained a respondent. "Then they provide the information to allow members to review their enhanced annuity options."
Another contributor said: "Shopping around is just that: a decision by the individual to look at their options."
