UK Pensions Paper May Disappoint Providers
The Pension Regulator will unveil on Friday a discussion document that could handle a blow to insurance companies and fund managers who hope to benefit from the change in the workplace pensions market. The regulator paper whether smaller employers would be better off using NEST. David Norg Rove, the former chairman of the Pensions Regulator, who resigned in December, said that the creation of thousands of small defined contribution pension plans is unlikely that an efficient way to deliver his retirement savings.
What we want is not another 50,000 DC plans, Norg Mr. Rove said in an interview in December. They do not have the scale for the administration and they do not have the scale to hold down costs.” The discussion document acknowledges that DC pensions are the primary vehicle for delivering work-based savings products become.
It is estimated that 5m to 8m by rescue workers in the coming years due to new laws requiring employers to contribute to a pension for every worker who does not opt out of the system. The paper asks for respondents’ views on “how value for money and governance standards in small schemes can be increased and whether there salvation in encouraging a transition to larger systems.” It comes amid growing interest among pension providers to compete with nest.
