The FCA's report into the annuity market will be published within the next 12 months, and may include rule changes and new regulations.
Ros Altmann, an independent expert and former Downing Street adviser, said more action should be taken now to halt the "scandal" that is depriving many of a fair income in their retirement.
The reason why immediate action is so important is that this market affects so many people and the transactions they are making are irreversible.
More than 1,000 people every week are buying annuities and the market is worth £14 billion each year.
More top news
Temperatures up with sunshine and thunderstorms
Real Madrid won another Champions League title, beating a shell-shocked Liverpool side 3-1 in Kiev.