Stop pensions profiteering, says MP

WARRINGTON South MP David Mowat (pictured) has called for government action to protect private pensions, pointing to the high margins generated by annuity providers.
He told the House of Commons: “That comes as no surprise given the complete market failure that has occurred in large parts of the private pension industry.”
He called on ministers to consider imposing “a uniform product structure-as has been done in energy-and enforcing legally the open market option.”
Pensions minister Steve Webb replied that Mr Mowat had “a good track record of challenging the issue of charges and value for money.”
The Association of British Insurers has just published a new code of practice, to which members have to sign up, to ensure that instead of people just defaulting to the provider they save with, they can shop around.
Mr Webb added: “We will monitor closely whether that makes the market more effective.”