UK - Ian McCartney, the new UK pensions minister, defended the take-up rate of stakeholder pensions whilst outlining outlining some of his aims for the new Department of Work and Pensions at a National Association of Pension Funds (NAPF) conference in London.
McCartney, appearing at before the NAPF for the first time, told delegates that it was early days yet, as far as stakeholder take-up was concerned and that he was certain of the product’s success.
Quoting figures from the Association of British Insurers (ABI), McCartney cited the 415,000 stakeholder policies that have been sold so far as evidence of stakeholder's growing popularity. McCartney also drew a comparison between stakeholder and ISA, predicting a similar level of success for stakeholder: When ISAs were first launched, people predicted that they would fail - but they have now outsold TESSAs.
The pensions minister also said that he is convinced that there is scope for significant changes, regarding current pensions legislation. McCartney said that one of his department's aims was to tackle what he called over cumbersome legislation that he believes is hindering the take up of pensions.
By Geoffrey Ho
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
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