For immediate release: Tuesday 14 October 2014
Morten Nilsson, CEO of NOW: Pensions, comments on today’s announcement that savers will be given the option of taking a number of smaller lump sums tax-free instead of one single big lump sum from their pension. “The Budget reforms are taking the industry into uncharted territory – a case of pensions, but not as we know it.
While many of these reforms are welcome and long overdue, the government need to remember the fundamental purpose of pension saving – to provide an income in retirement for however long you live.
A balance therefore needs to be struck between flexibility and responsibility. Achieving this isn’t easy, but the government need to be more consistent and coherent in its approach, focussing on the entire pension saving journey.
At the moment the messages are somewhat mixed – on the one hand relying on inertia to drive saving through auto enrolment and on the other giving savers an entirely free rein with their cash, hoping they will make responsible decisions at retirement.”
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Notes for editors:
NOW: Pensions www.nowpensions.com
NOW: Pensions is an independent, multi-employer trust serving thousands of employers and hundreds of thousands of employees from a wide range of sectors.
A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions offers a simple and cost effective workplace pension solution direct to employers and via advisers and the payroll sector.
In April 2013, NOW: Pensions became the first master trust to attain the NAPF’s new PQM Ready Standard. The benchmark shows employers that NOW: Pensions is a well governed pension scheme with low charges and good member communications.
The NOW: Pension Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:
- Jocelyn Blackwell, founding partner Dunnett Shaw
- Christopher Daykin, former Government Actuary
- John Monks, member of House of Lords and former General Secretary of ETUC and TUC
- Win Robbins, former Head of European Fixed Income at Barclays Global Investors
- Nigel Waterson, former Shadow Pensions Minister
Charges are just £1.50 per month administration charge (reduced administration charge of £0.30 – £1.00 to be applied during auto enrolment phasing for lower earners) plus a 0.3% annual product investment management charge, with no hidden charges.