Morten Nilsson comments on Chancellor’s announcement

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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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 For further information:

Amy Mankelow
NOW: Pensions
Tel: 020 3640 9075
amy.mankelow@nowpensions.com

Valentina Kristensen
Lansons Communications
Tel: +44 207 566 9720
nowpensions@lansons.com

Notes for editors:

NOW: Pensions www.nowpensions.com

@nowpensions

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.

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I am backing NOW: Pensions, the ATP project, because I believe it will encourage transparency, low costs and decent returns for millions of British employees. — Nigel Waterson, former Shadow Pensions Minister
I'm excited by the opportunity to help bring to the UK auto-enrolment market NOW: Pensions, a customer-friendly and responsive trust-based alternative to NEST and to contract-based offerings. — Chris Daykin, the former Government Actuary
“We were impressed with the simplicity of its scheme. The ease of implementation was also a big plus for us and has removed much of the administrative headache.” — Neil Tune, HR director at Fitness First
Why do we insist on having a choice of fund manager when the evidence shows there is usually no benefit to be gained…and there is always a negative impact in terms of cost? — Anthony Hilton financial editor of the Evening Standard writing in Pensions World, June 2013
I firmly believe in NOW: Pensions' principle that everyone deserves the right to a better retirement. I look forward to being part of the team which aims to achieve this in the UK. — Win Robbins, former Head of European Fixed Income Barclays Global Investors