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Press Comment: Government confirms it will publish self-employed pension paper this winter

17/12/2018

If you are covering the Government’s Good Work plan in which it announces it will publish a paper on ways to boost pension saving among the self-employed ‘this winter’, please see the following comment from Jon Greer, head of retirement policy at Quilter:

Jon Greer“It was revealed by the Government in its Good Work plan published today that in the winter of 2018 the DWP is planning to publish a paper exploring how to increase the pension participation of the self-employed.

“This step is not only welcomed but badly needed as the self-employed currently slip through the cracks of auto-enrolment and there is still no clear strategy to make sure that this group of people put enough away to fund their retirement.

“The Taylor Review, commissioned by the Government and published in 2017, suggested that the self-employed should be automatically enrolled into a pension, paying 4  per cent of income into a product unless they choose to opt out. While any solution tabled is a good stride forward, we need to think carefully about the nuances of this approach.

“For example one of the biggest problems that the self-employed have to contend with is a lack of certainty and security of their income month to month. Therefore, particularly for those with lower and moderate incomes, the idea of committing money into a pension pot that can’t be accessed for years to come could seem very unpalatable and therefore avoided. To make pensions more appropriate for the self-employed, a pension ‘sidecar’ should be explored, a pool of money made accessible at any age in times of need – something that NEST is in the process of trialing.

“However, whatever solutions the Government put forward in this winter paper they need to avoid a ‘one size fits all’ approach to pension saving for the self-employed as they are unique group of workers with vastly differing needs.”

For more information contact

Alex Berry023 8072 626007741 151931alex.berry@quilter.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 £114.9 billion in investments (as at 31 March 2019).

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: Advice and Wealth Management and Wealth Platforms.

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

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.

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.