Savers’ interests must be the key consideration when evaluating Value for Money (VfM) in pensions, the director of policy at People’s Partnership1 has told conference delegates today.
Speaking at the PLSA Investment Conference in Edinburgh, Phil Brown told an audience that the anticipated Value for Money metrics2 that have been devised by The Department for Work and Pensions (DWP), The Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) were an important intervention.
Speaking after a debate about whether even greater value for money is possible for investing in Defined Contribution pensions, Mr Brown said anticipating the future value offered by a scheme is crucial. He said that VfM metrics must be easily accessible to consumers.
Commenting, Mr Brown said People’s Partnership, the provider of The People’s Pension, believe the DWP and regulators were right to focus on investment returns, along with costs and charges and service standards as part of the consultation into VfM, which finished earlier this year.
He said: “We welcome the introduction of well-designed, standardised value for money measures, covering investment, cost and service standards for all. However, we mustn’t lose sight of the fact that VfM metrics should be developed for the benefit of the saver – rather than just for industry professionals.
“The drive for VfM will only succeed if the metrics are presented in a way that is easily accessible to time-poor consumers. Currently the vast majority of savers do not choose to engage with their pensions, and it is nearly impossible for people to compare different products and schemes and make a judgement about what will best suit their needs.”
ENDS
Notes to editors:
1. People’s Partnership is a profit-for-people organisation. It provides The People’s Pension, a leading workplace pension scheme, serving more than six million pension savers across the UK and manages £20bn in assets. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.
2. Details of the consultation, Value for Money: A framework on metrics, standards, and disclosures: https://www.gov.uk/government/consultations/value-for-money-a-framework-on-metrics-standards-and-disclosures/value-for-money-a-framework-on-metrics-standards-and-disclosures
For further information, please contact: Blaise Tapp, media relations manager at People’s Partnership, on 01293205336 or blaisetapp@peoplespartnership.co.uk