Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2014
06

Pensions professionals 'not yet ready for Budget reforms'

Open-access content Tuesday 26th August 2014 — updated 5.13pm, Wednesday 29th April 2020

More than two-thirds of UK pension professionals are not yet prepared for the consequences of the far-reaching retirement changes announced by Chancellor George Osborne in this year’s Budget, a poll by Aon Hewitt has claimed.

A survey of more than 300 professionals found that although a majority of respondents admitted that they were not well prepared now, they were confident they could hit the April 2015 target as the reforms are implemented.

Among the changes announced in March was the end of an obligation to buy an annuity with pension savings.

Aon senior partner Kevin Wesbroom said the Budget changes were fundamental for both defined benefits and defined contributions schemes.

'Sponsors and trustees need to stand back from their schemes and ask some fundamental questions about how they see their relationship with members,' he said.

'They then need to align their administrative processes, member communication and education systems to support their decisions.'

Aon also asked the professionals whether they expected to be able to make the process and systems changes needed to offer the best options after the reforms are introduced. One in five said they were not confident and would need significant extra resources, either in terms of time, money, or external support.

Wesbroom highlighted that the vast majority of the DB schemes polled predicted a 'sizeable minority' of their members would look to take advantage of the Budget flexibilities.

'So, as well as reviewing the various actuarial factors involved - cash equivalent transfers, commutation rates etc - schemes will need a coherent plan for how and when they present the new options to their members,' he added. 

This article appeared in our June 2014 issue of The Actuary.
Click here to view this issue
Filed in:
06
Topics:
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ