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Pensions 'must work for consumers'

The UK pensions system is not working, the City watchdog has concluded following a review into the "disorderly" annuities market.

An annuity is a retirement income that is bought once with a pension pot and provides an income for the rest of the holder's life.

Otto Thoresen, director general of the Association of British Insurers, told the Today programme's Sarah Montague that the industry must do everything it can to make the market "work effectively" for consumers.

He stated that despite his organisation introducing a code of conduct in March 2013, to try to improve the way that pension companies present their data, early evidence suggests there has not been a "significant increase" in the number of people choosing to switch providers.

First broadcast on BBC Radio 4's Today programme on Friday 14 February.

  • 14 Feb 2014
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