NOW: Pensions comments on findings of FCA thematic review into the annuities market

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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:

Amy Mankelow
NOW: Pensions
Tel: 07941 105879
amy@nowpensions.com

Victoria Leyton
Lansons Communications
Tel: +44 207 294 3620
nowpensions@lansons.com
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:

  • 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.

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...its simple design means the pressure is taken off us as the employer and avoids costly administration charges, whilst removing the burden of choice and ensuring the best possible retirement outcome for our employees. — Matthew Johnson, Head of Compensation and Benefits at Adecco Group UK & Ireland
Over a short period of time, NOW: Pensions has established itself as a respected and credible player in the UK workplace pensions market attracting thousands of employers and hundreds of thousands of members. Joining the team at such a crucial time… — Jocelyn Blackwell, Founder of Dunnett Shaw and Raising Standards in Pensions Administration
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
…We pride ourselves on our abilities to make the perfect match for both clients and workers. Our decision to appoint NOW: Pensions came as a result of wanting a quality workplace pension scheme that is structured, simple and easy for us to… — Ian Naylor, Legal Director of Randstad
“Redington’s Investment Committee assigned an Approved Rating to the NPI DGF and positive on the fund.” — Redington