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Morten Nilsson, CEO of NOW: Pensions said: “There’s no doubt that the annuity market in its current form is outdated and ineffective.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:
Tel: 07941 105879
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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.