NOW: Pensions comments on the annuity reforms announced in today’s budget

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For immediate release: Wednesday 19 March 2014

Morten Nilsson, CEO of NOW: Pensions said: “There’s no doubt that the annuity market in its current form is outdated and ineffective.

 Giving savers greater flexibility over how they access their pension pot is good news. But by handing them a completely free rein it feels like the Chancellor is throwing the baby out with the bathwater.

 By introducing auto enrolment, the government acknowledges that there is an inherent lack of interest in pension saving. To expect savers to have sufficient knowledge to make good choices at retirement, feels somewhat counter-intuitive.

 If this policy is to work, advice is imperative otherwise there is a real risk that savers will end up making ill informed decisions.

 The pensions industry needs to move quickly to adapt to this new environment developing more innovative, flexible and competitive at-retirement products.

 One of the unintended consequences of this radical change is that some of the larger players who make a large proportion of their profits from annuity sales might choose to exit the market.”

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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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Our broker recommended NOW: Pensions, as they believed it would be our best option. We have not been disappointed, the NOW: Pensions customer support teams are great and always available. — Bromborough Paint & Building Supplies Ltd
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
NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions. — Martin Woods, SALT.agency
I've known ATP for many years and have enormous respect for the effectiveness of their investment strategy. I'm convinced that NOW: Pensions can become a major player in the UK and look forward to being a part of that success. — Chris Daykin, the former Government Actuary
NOW: Pensions was attractive to us because the staff were very helpful and they sent over all the information required. This made the decision easy. — Metro Surveillance Group Ltd