Opportunities still exist for pension providers

While it is widely acknowledged that people are not saving enough for their retirement, a new report from Defaqto to be published in early October, indicates that there are still good opportunities for pension providers to flourish in the current environment.

Following the reforms of A-Day, the amount of money that can legitimately be transferred into pension vehicles has greatly increased and with it the opportunities available. Also changing is the way that people are thinking about how they make provision for their retirement. The new rules give much greater flexibility to individuals to manage their pension contributions to achieve their goals. For example it is no longer necessary to start saving at a young age in order to build up a sizeable pension pot.

The report also evaluates where pension providers are currently targeting their products and how this is likely to change as time goes on. With many other investments competing with pensions, providers realise that developing products that appeal to their target markets, supported by high service standards, will be needed to retain pensions’ appeal.

The report also carries unique research among intermediaries as to how well providers perform across a wide range of Quality Performance Functions and who the intermediaries rate as their preferred suppliers.

Research among consumers is also included in the report. This provides an analysis of how the “man and woman in the street” think about pension provision and what they are doing about it.

Matt Ward, Group Principal Consultant – Pensions & Wealth Management, and author of the report said: “I believe this report will be an important contribution in understanding the pre and post – retirement savings market and will highlight how the market is moving and how providers can position themselves to capitalise on opportunities.”