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Public 'can't afford' pension policy tinkering as freedoms inquiry launched

20/09/2017

If you’re covering the Work and Pensions Committee decision to launch an inquiry on pension reforms, please see the following comment from Jon Greer, head of retirement policy at Old Mutual Wealth. Jon says given the Financial Conduct Authority are already looking into pension freedoms, it is crucial the two bodies join up their thinking. 

Jon comments:

Jon GreerThe FCA is already in the process of exploring pension freedom reforms and have raised concerns about non-advised drawdown so there is an opportunity for joined-up thinking.

When pension freedoms were first introduced they were spearheaded by the then Chancellor, George Osborne. The legislation was introduced quite rapidly for such a fundamental reform to the savings system, and caught a lot of people off-guard. That is why, two years after the reforms were introduced, policymakers are still asking questions.

Consumers can’t afford for long-term savings policy to be in a constant state of flux and will be concerned that this review may signal further changes. Trust in pensions is already a major issue as recent figures from the Office of National Statistics have 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.

Constantly changing policies is hurting the savings culture and if people think more changes are coming down the pipeline, they are likely to lose even more faith. A consultative approach to policymaking could help make that culture more healthy and sustainable. Ideally we need a cross-party group to convene to set out a long term vision for pension policy, rather than have the party in government introduce reforms which are later queried by other MPs.

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com
Kathleen GallagherOld Mutual Wealth023 8072 629307990 004932kathleen.gallagher@omwealth.com

Notes to editors:

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

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy 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; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

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  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
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On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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