McPhail heads up retirement income body

Tom McPhail is heading up an industry initiative to tackle Britain’s decumulation crisis.

Living Time, MGM Advantage and Partnership Assurance have joined forces to promote the range of options available to investors in retirement.

McPhail, head of pensions research at Hargreaves Lansdown, has been chosen as the group’s interim chairman and will prepare the new body for its formal launch.

He says many people in the UK already have inadequate pension savings, and are making their retirement worse by not getting the best income products available to them.

“Last year only 33% of people used the open market option to seek a better deal,” says McPhail.

“What is more, it is important to remember that it is not just about the rate. There are over 10 different retirement income product types available to suit different client needs from conventional, enhanced, fixed term, with profit, flexible and variable annuities to drawdown, phased retirement and equity release.”

The group, which currently has no name, is being chaired by McPhail while a management and advisory board is set up, at which time an independent chairman will be chosen.

A white paper will be published in the autumn, outlining the key issues affecting retirement income.