UK not ready for pension changes | Fin24
  • SAA

    The flag carrier has vowed to re-accommodate passengers after it cancelled flights to save cash.

  • Poverty Cycle

    South Africans are struggling to escape poverty due to low levels of social mobility, says the WEF.

  • Slowdown

    The International Monetary Fund has revised SA's growth outlook for 2020 down to just 0.8%.


UK not ready for pension changes

Feb 25 2015 09:30

London - Britain's government and regulators are not ready for pension reforms, six weeks ahead of their launch date, the head of the insurance body said.

Reforms due to come into force on April 6 will allow retirees to use their pension pots as they choose, with no obligation to buy an annuity, which gives an income for life.

"The government has simply not been able to deliver enough at this stage to ensure the reforms have a flying start when they go live," Huw Evans, director-general of the Association of British Insurers said in prepared remarks to be delivered at a conference on Wednesday.

"Critical pieces of the jigsaw are still missing and will not be in place in time."

Evans said the pensions industry was still awaiting rules from the Financial Conduct Authority on how pensions providers were able to communicate with customers.

Some tax rules needed to be finalised and there was no phone number for the government's guidance service, Pension Wise, Evans added.

Industry observers say the reforms - announced a year ago - give pensioners more choice, but have been introduced with haste.

Evans, who took on the role of director-general this month, said he saw "no point in a blame game". He said April 6 was only the start of the new pension freedoms, adding: "People should not be rushed into making quick decisions about pension savings they may have accumulated over 30 years."

pension funds  |  economy


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote