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FCA Retirement Outcomes Review

12/07/2017

If you are covering the FCA’s Retirement outcomes review: interim report please find a comment from Jon Greer, head of retirement policy at Old Mutual Wealth:

Jon Greer“Today's data from the financial regulator shows that consumers simply cannot afford not to take advice at the point of retirement. Therefore, the FCA is right to look at increasing consumer protections where people are either unable to unwilling to take advice. 

“Over half of customers are taking their retirement savings and investing in something else, like an Isa, cash, buy-to-let or fixed-term deposit. This can have disastrous long-term consequences. 

“Taking a lump sum in a single tax year is likely to result in paying more income tax than withdrawing money gradually. And savers are giving up future tax-free investment growth in a pension in exchange for comparatively low-growth assets like cash, or illiquid property. 

“Figures from the Office of National Statistics last week revealed that almost half of people (49%) consider property the best means of making money for retirement. Only 20% of respondents said workplace pensions were the best way to maximise returns. 

“The report confirms that pensions are suffering an image problem. But modern pension products offer competitive charges, a range of investment options, liquid investments that can be easily sold to produce income, and come with the protection of the Financial Services Compensation Scheme.

“Trust in pensions is a major issue and the regulator and the savings industry must do more to understand why some members of the public are fearful of pensions. There is a strong case for government to establish a cross-party independent commission to set pension policy. The report confirms that constantly changing policies is hurting the savings culture and a consultative approach to policymaking could help make that culture more healthy and sustainable.”  

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com
Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com
Kathleen GallagherOld Mutual Wealth023 8072 629307990 004932kathleen.gallagher@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.