On 19th March 2014, the Chancellor announced that savers would no longer be compelled to purchase annuities upon retirement. This represents one of the biggest changes to the UK pension regime for almost a century. Is this the Armageddon feared by the industry or just an evolution of the pension’s framework which has been on the horizon for some time? Reactions in the market have been mixed but a majority have welcomed the announcement.
There is no doubt that the changes introduce very significant challenges to firms with a heavy reliance on annuity business. But it also presents opportunities to firms that are able to develop innovative new products and services for customers who’ll want to leave assets invested longer into retirement. Even firms that believe these changes will be advantageous to them will need to rapidly change and refine their offerings in the face of such sudden change and fierce competition. On balance, there will inevitably be some winners and some losers.Our paper will help you to identify the key challenges and opportunities facing your business and consider what your business needs to do now.