NAPF calls for caution on IMA proposals to end compulsory annuitisation
Tuesday, 11 Mar 2008 15:13
In response to today’s announcement by the Investment Management Association (IMA) on ending compulsory annuitisation, the National Association of Pension Funds (NAPF) believes the proposals should be treated with caution.
NAPF Policy Director, Nigel Peaple, said: “The IMA suggests that the Government should allow people more ways in which to decumulate their pension pot.
“Whilst we welcome innovation and flexibility, any proposals which add complexity to the decisions faced by people at retirement or reduce their certainty in the level of income they will receive, should be treated with caution. This is especially the case for those on low to moderate incomes.
“Three in every four people feel pensions are so complicated that they cannot understand the best thing to do and that is already too many.”
According to the 2006 DWP Research Report1, Attitude to Savings, 74% of respondents stated that
‘Sometimes pensions seem so complicated that I cannot really understand the best thing to do.’
ENDS
Notes for Editors
1 Department for Work and Pensions - Research Report No 434 : Corporate Document Services, Attitudes to pensions: The 2006 survey. (Page 122)
About The National Association of Pension Funds
The NAPF is the leading voice of workplace pension provision in the UK. Some 10 million working people are currently in NAPF Member schemes, while around 5 million pensioners are receiving valuable retirement income from such schemes. NAPF Member schemes hold assets of around £800bn, and account for approximately one fifth of investment in the UK stock market.
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