Workplace pension schemes are to be Investigated by Office of Fair Trading
As automatic enrolment into a NEST pension scheme gathers pace, the Office of Fair Trading (OFT), are to investigate workplace pension schemes.
The OFT stated a market study would examine whether they are geared up to deliver the best value for money for savers.
As it stands four million people in the UK are currently enrolled in such a scheme to save for retirement and the Government’s auto-enrolment, NEST pensions, is expected to result in as many as nine million others having to join up.
It is widely hoped that defined contribution schemes, which invest money contributed by an employer and individual to buy a pension income, will help eradicate the crisis in retirement incomes.
It is reported that the value of annual contributions into pension schemes is expected to soar by around £11bn by 2018.
Joanne Segars, Chief Executive of the National Association of Pension Funds (NAPF), said that people are often “very suspicious” about pensions, but this needs to change in order to get more saving for their old age, especially given growing life expectancies.”
Joanne went on to say “Millions of people will get a new workplace pension under the much-needed auto-enrolment reforms and they need to have more confidence in the product.”
The watchdog also wants to discover whether smaller firms are being given enough help in establishing pension schemes.
With that in mind let Guardian Wealth Management help, whether as a company or an individual seeking help with their retirement planning, please don’t delay contact one of our financial advisors.