For immediate release: Friday 14 February 2014
Today the Financial Conduct Authority published the findings of its review of the annuities market and announced plans for a competition market study.
Morten Nilsson, CEO of NOW: Pensions said: “With auto enrolment, millions more people are going to be saving for their retirement and will ultimately have to make an annuity purchase.
In recent months, the attention of the government and the regulator has been focussed on raising standards and driving down charges in the pensions industry. But, all of these efforts will be overshadowed if, at the end of the day, savers end up with a poor value or unsuitable annuity.
Improving competition and encouraging consumers to shop around for their annuity is imperative. It’s truly bizarre that you can’t buy home or pet insurance without disclosing relevant information yet you can do so when buying an annuity, which is one of the most important financial purchases you’ll ever make.
I firmly believe that pension providers have a responsibility to promote access to the best options from the whole marketplace when members reach retirement to make sure that their pension pot stretches as far as possible and reflects their individual circumstances. I hope today’s report is the first step along the road to improving the market significantly for consumers.”
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For further information:
Tel: 07941 105879
Tel: +44 207 294 3620
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:
- 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
- Imelda Walsh, former Group HR Director of Sainsbury’s
- 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.