AEGON Industry Blog

Spring in Europe – and more regulation ahead

Wed, 10 Mar 2010 14:07:00 +0000

In the forest of European regulation, things are stirring. There are unfamiliar creatures, and others we haven’t seen for a while are being prodded back into activity. This stirring has been prompted by several factors. One is the Lisbon Treaty – since it was implemented last year existing Directives have to be reopened to accommodate it. Secondly, we have a new Commission, and in particular a new Commissioner for Internal Markets, Michel Barnier. Compared to his predecessor, he appears to be much keener on active regulation – in a recent speech to the British Bankers’ Association, he stated ‘To restore confidence, we need regulation’ (although to be fair, he did go on to qualify this as ‘smart, effective and proportionate regulation’).

Pensions reform: And the winner is . . .

Fri, 05 Mar 2010 13:29:24 +0000

The recent news that PADA has chosen Tata Consultancy Services (TCS) as the successful bidder for the NEST scheme (previously personal accounts) administration contract probably didn’t come as much of a surprise to anybody.What was surprising, however, was the timing of PADA’s announcement. Rather than wait until June – which was always the plan – it now intends to sign a contract with TCS later this month. The contract will run for 10 years, with the possible extension of another five years. It will be split into two stages: the first running up to October, and the second from October onwards.

Pensions reform: Building the NEST

Thu, 18 Feb 2010 14:22:00 +0000

In the four and a half years since Adair Turner delivered his recommendations for Pensions Reform, the world has moved on. Plans for automatic enrolment and the new NEST scheme will now be delivered against a background of the UK economy emerging from recession.

Getting hung-up about the election

Thu, 11 Feb 2010 15:32:00 +0000

Six months ago, with the Conservatives consistently leading Labour by 15 points or more in the opinion polls, it was commonplace at industry gatherings and around Westminster to hear remarks preceded by the phrase, ‘When the Tories get in …’.Now, with a crop of recent polls showing that lead is down to single figures, and with the quirks of the electoral system currently doing the Conservatives no favours, there’s renewed speculation that instead of a decisive result, the upcoming general election could yield a hung parliament. And that could leave a lot of things up in the air as far as future policy towards the financial services sector is concerned.

Keep on working beyond age 65 – if you want to!

Wed, 27 Jan 2010 16:37:00 +0000

Earlier this week the Equality and Human Rights Commission revealed its proposals for fundamental changes to employment policies for older people and addressing the challenges of an ageing workforce. These proposals include the removal of the default retirement age of 65, which the Commission argues forces many ‘able and willing’ people out of the workforce at an arbitrary age. The Commission is anxious to dispel the myth that people are ‘past it’ once they reach their 60s. And many older people support change in the workplace. The Commission carried out a telephone poll of 1,500 people aged 50 to 75 to find out about their aspirations and the barriers they face and potential solutions. Of those polled, 24% of men and 64% of women want to keep on working beyond State Pensions Age (to be equalised at age 65 by 2020, rising to age 68 by 2046).

Pre-Budget Report: Widening the net

Wed, 09 Dec 2009 16:16:00 +0000

The Government had already warned, ahead of the today’s Pre-Budget Report, that those with the widest shoulders would carry the burden of helping get the UK back into the black. And true enough, the pensions rumour mill was proven right when changes were yet again announced to pensions tax relief for the highest earners. The Pre-Budget Report has widened the net for those caught by the new pensions tax relief rules – both the permanent changes after April 2011 and the temporary anti-forestalling legislation already in place. With immediate effect, those who have an income of over £130,000 may find their pensions tax relief restricted.

Pre-Budget Report rumour mill

Mon, 07 Dec 2009 17:02:00 +0000

The rumour mill is going into overdrive as the pensions industry speculates about what will be in Wednesday’s pre-budget report. As the government is legislating to halve the national debt in only four years, it will have to put in place plans to make sure it raises enough cash to meet this target. There’s been a lot of talk about spending cuts, including reducing the number of senior civil servants by 20% over three years and selling off government property. But what about pensions? Will there be a further erosion of the EET pension deal – tax exemptions on pension contributions and investment return on the way in and partially taxed on the way out?

Retirement research: helping people to a better retirement

Wed, 25 Nov 2009 08:38:26 +0000

How people approach the question of retirement is one that is intriguing us at AEGON. By that I mean, not what pension benefits or financial solutions people pick at retirement, nor what needs they think they are meeting. More how do they approach retirement, what are they thinking, what frameworks and role models do they use?This year, AEGON commissioned the Office of Public Management (OPM) to conduct some qualitative research into this area. We want some fresh thinking, and to start from a ‘blank sheet of paper’.

Pensions Reform: Turning rules into principles

Thu, 12 Nov 2009 11:56:00 +0000

The DWP’s consultation on the regulations on Workplace Pensions Reform closed last week, and my head is still buzzing from reading through almost 250 pages of rules. Why does it have to be so complicated?Rules for on when and how employers have to automatically enrol staff. Rules on the different categories of employee and what communication they have to receive. Rules on when contributions have to be deducted from paypackets and when they have to be refunded. Rules on how employees can opt out. Rules on how employers can self-certify contributions. Rules on how employers have to register with the pensions regulator (tPR). (And then re-register three years later.) Rules on how employers can comply with the legislation. And rules on what penalties the tPR can dish out to errant employers and third parties.

Retail Distribution Review – Access All Areas

Thu, 05 Nov 2009 10:14:37 +0000

‘Access All Areas’ may conjure up images of VIP zones and back-stage passes for the privileged few. Unfortunately, the Retail Distribution Review risks being equally (if unintentionally) exclusive despite its original aims including making help and advice available to the many, not the few. While AEGON supports most proposals in the June RDR Consultation Paper, we have major concerns that the original objective of improving consumer access to advice will not be met. Without this, many will simply not invest for the future.