The Financial Services Consumer Panel (FSCP) is calling for urgent change to the annuities system in order to "prevent millions of pensioners from losing out".
The call comes after the panel's research into the consumer experience of purchasing an annuity found that the market is not working as well as it could be for the majority of consumers.
This has led the FSCP, which is a statutory body set up to advise Government on the interests and concerns of consumers, to recommend a number of reforms.
It says the Financial Conduct Authority should:
"The Financial Services Consumer Panel is right in its assertion that the current annuity market is not working for the majority of consumers and greater regulatory action may be inevitable.
"The fixed nature of an annuity contract means that once a decision is made there is no going back, so individuals must explore the full range of retirement income options open to them beyond simply staying with their existing pension provider."
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