Pensions: The age-old problem

Heavy lorryThe quest to find a solution to national systems of pensions delivery trundles onwards.

Today, the Financial Conduct Authority (FCA) in the UK has confirmed that it will proceed with the recommendations from its retirement income market study, published in December.

The proposed remedies include requiring firms to provide an annuity quotation ranking so that consumers can easily identify if they could be getting a better deal by shopping around. Also, in the longer term, the intention is to create a pensions dashboard which will allow consumers to see all their pension pots in one place.

Christopher Woolard, director of strategy and competition at the FCA says the retirement income market is set for the “biggest change in a generation”.

In our latest issue of Funds Europe, Fiona Rintoul points out that there has been a “great deal of chat” about the need to improve pension provision, but it often feels that society is no nearer to providing a solution.

Perhaps the asset management industry itself could provide an answer. Recently, the European Fund and Asset Management Association said it had wide support for its proposed cross-border personal pension product.

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