There was no smoking gun. Annuities hare not bad value but- through poor purchasing, they have delivered poor outcomes.
This is my 20 word precis of the 100 page document which you can read for yourself here.
This conclusion has not delighted the journalists looking for a story of consumer detriment and unlimited redress. Annuities are not going to be the next PPI, the insurers are not going to be hung out to dry (as the banks are), the budgetary pension reforms will bring about changes in pensions which will sort the problem in time.”
At the heart of this document we find this statement
profitability analysis is consistent with the findings of our previous thematic review, which found some differences in profitability in different parts of the market but did not find clear evidence of excessive profits overall.
In conclusion, our findings show that despite the poor perceived value, the right annuity, when purchased on the open market, may still represent the most appropriate retirement income product for some consumers
The coffin lid slams shut on mass market annuities. The corpse has been embalmed and laid to rest. May it rest in peace.
But something stirs in the dead of night…
In 2013, 353,000 annuities were sold, two thirds of which were standard annuities.
For these purchasers, the realisation that they must live with the corpse for the rest of their days, is resonant of the “night of the living dead”,