The UK government will take action against pension providers who offer poor deals to savers who want to take advantage of pension freedoms.
The Secretary of State for Work and Pensions Iain Duncan Smith said two months after the introduction of the reforms, that the government was "watching the market closely".
Writing in The Daily Telegraph, he said while many providers had "stepped up to the plate" to offer new and innovative drawdown products to pensioners, he was concerned some firms appeared to be "dragging their feet".
"I have a message for those firms: it is your responsibility to sort this out, and look after your customers. After all, you are holding their money - not your own," he said.
He reminded pensioners that they could receive guidance from Pension Wise to understand their options.
According to Duncan Smith, over the coming weeks, pensions minister Ros Altmann and economic secretary to the Treasury Harriett Baldwin will be talking to regulators and the pensions industry about how to ensure customers "have the flexibility they deserve".
Earlier this month, Friends Life decided to focus on customers who wanted full cash withdrawals and said it would only offer partial withdrawals "in due course".
