Fidelity backs Pica OMO group

Fidelity Investment Managers has joined the board of the Pensions Income Choice Association (Pica) becoming the first fund manger to back the pressure group.

Pica is lobbying government to change the open market option (OMO) system which, it argues, still leaves many pensioners with less retirement income than they are entitled to.

Gary Shaughnessy (pictured), UK managing director of Fidelity Investment Managers, said: ‘Fidelity is opposed to the current single default option which only directs people to purchase an annuity. We believe this choice should be properly informed allowing people to choose the solution which is best for their individual circumstances.’

Pica launched in 2009. Its management group members are Living Time, LV=, MGM Advantage, Partnership, and Bluefin Group.

Tom McPhail, head of pensions research at Hargreaves Lansdown and Pica chairman, said: ‘Fidelity’s support for Pica’s campaign to put investors in control of their retirement funds is a demonstration of the breadth of demand for reform across the retirement and investment community.’