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17 January 2013

Pension funds hope OFT study sheds more light on DC pensions market


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The National Association of Pension Funds (NAPF) commented on the announcement today by the Office of Fair Trading (OFT) that it will undertake a market study on defined contribution workplace pension schemes.


Joanne Segars, NAPF Chief Executive, said: “People are often very suspicious of pensions, but that perception needs to change if our society is to save enough for its old age. Millions of people will get a new workplace pension under the much-needed auto-enrolment reforms, and they need to have more confidence in the product. There is no point bringing them into a pension that they do not trust. The OFT study is a useful initiative and part of a growing focus questioning whether pensions can offer more value to savers. Charges and annuities are a particular concern, and we hope the OFT sheds some light on these issues, which can make a huge difference to a pensioner’s income. The market is changing and charges have fallen over the years, but there is still further to go to ensure people get the best possible value from a pension.“

“The NAPF has been leading the way, helping employers better understand costs and charges in these pensions. But other questions remain to be answered, including those about the structure of the UK pensions industry. Small employers are vital to the success of auto-enrolment, but they also struggle to understand and access good pensions. It is helpful that the OFT is going to look at this group. Workers need to know that they are getting the best deal, whether they are working for a small or large company.”

Press release



© NAPF


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