In today’s budget, the Chancellor has significantly increased the flexibility for customers to choose how and when they access their pension savings during retirement.
Whilst the announcement represents an opportunity for the ‘self service’ financial providers and wealth managers, KPMG warns that the announced changes to defined contribution pensions schemes will shake up the business models of players in the pensions and annuity industries.
Commenting on the Chancellor’s announced changes, Phil Smart, UK head of insurance at KPMG, said, “This represents a massive shake-up for the pensions and annuity industries. It will require a fundamental shift in the strategies and business models of annuity providers – one of the few remaining areas of the UK life industry which has remained active in recent years. Annuity writers will now need to develop innovative and compelling solutions to meet the retirement and social care needs for consumers.”
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Chancellor’s Budget 2014
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