2014: The Year When The Saver Is Finally Put At The Heart Of Pensions, Says Fidelity's Julian Webb

Shifting sands of the pensions industry will put the spotlight on those providers who do the right thing and those who donít. Evolution of Auto Enrolment will continue to be the force of unprecedented change throughout next year and beyond.

Online PR News – 12-December-2013 –Much like the Retail Distribution Review in the IFA world, Auto Enrolment will continue to force change across the pensions industry throughout the next 12 months and beyond, finally putting the spotlight on providers who do the right thing for their clients and those who donít.

This combination of change will ensure that 2014 will be the year when getting the best outcome possible for the saver finally becomes central to Workplace Pensions from an industry wide perspective says Julian Webb, Fidelityís Head of DC and Workplace Savings.

Below, Julian sets out the key factors that he believes will come together in 2014 to make this happen:

ē The Government will see that quality DC schemes donít begin with a charge cap, they begin with what they need to deliver for the pension scheme member in retirement. The industry will set about helping employers and advisers to find the right solutions at the right price for members;

ē Annuity providers will be forced to concede that what they deliver for their customers is not always in line with ensuring that they make the most of their hard earned retirement pot. Steve Webbís Annuity Task Force and the Financial Services Consumer Panelís paper on annuities will provide the need for annuity providers to ensure they will finally begin to adhere fully to the ABIís Code of Conduct;

ē Pension scheme providers will acknowledge that while it may not be in their best interest to support pot follows member, the interests of the member must start to come first. While it may not help the balance sheet to let pots go to other providers, it simply doesnít make financial sense for the saver to have lots of small pots;

ē Employers can be sure that whatever workplace scheme they have in place they can be confident that the scheme is well governed and ultimately managed with the membersí best interests in mind;

ē The dialogue around auto enrolment will shift from opting in or out to increasing contributions and auto escalation. Current contributions levels make a bad situation better but will not resolve the nationís shortfall in retirement.

Fidelity is one of the UK's largest investment fund managers with over 660,000 customers in the UK. We look after assets worth £148.7 billion* and are dedicated to achieving the best possible returns for our investors.

Media contact:

Joanne Macklin
joanne.macklin@fil.com
020 7961 4361
Fidelity Worldwide Investment
http://www.fidelity.co.uk

Paul Sheldrake
paul.sheldrake@fil.com
020 7074 5583
Fidelity Worldwide Investment
http://www.fidelity.co.uk

 
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