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Important note:
The information in this Media section is intended for use by journalists only and customers should not use it to make financial decisions. Please remember that information in past press releases may no longer be current.
The information in this Media section is intended for use by journalists only and customers should not use it to make financial decisions. Please remember that information in past press releases may no longer be current.
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News
30 July 2010
e-alert: New retirement playing field could cost savers warns Friends Provident
The Government's consultation process looks at scrapping the Default Retirement Age (DRA) for the UK workforce provides a welcome reminder for savers in the UK to start planning ahead for their financial future or face working into their seventies.
Friends Provident argues that although abolishing the default retirement age will make it easier for people in the UK to work longer, there will be a proportion of the 'greying' population who may in fact not be fit enough to work.
The provider also warns that axing the DRA could have unintended consequences for Group Risk benefits. With no fixed termination date, this could ultimately lead to an increase in cost for employers meaning some may consider removing cover altogether for their employees.
With the number of workers aged 55 plus expected to grow significantly in the next 10 years (from 5.14 million to 7.16 million according to the Visions of Britain 2020 report) Friends Provident believes this provides a good opportunity for employees to phase their retirement as they will no longer be required to leave employment at a pre determined age but cautions people should not use this as an excuse to put off saving for retirement.
Friends Provident's research – Visions of Britain 2020, The Workforce- showed 48% of workers would like to work either full or part-time beyond the statutory retirement age and the provider believes today's proposals should help enable this happen.
Martin Palmer, head of pensions marketing at Friends Provident, said:
"Axing the default retirement age clearly provides greater individual choice and freedom to work as long people want to but people need to be aware of the reality of working longer. As a nation we should start seeing retirement as a process in our lives and not a one-off event.
"We need to provide the right savings options to enable employers to provide a suitable savings culture that will encourage people to take control and start investing in their future today. Corporate platforms will offer employees the chance to select tax efficient savings that match their life goals by encouraging a greater percentage of the working population to start making provision for later on in life."
- Ends -
Journalists requiring further information should contact:
| Contact name | Company | Contact number |
|---|---|---|
| Emma Wylie | Friends Provident | 0845 268 4909 |
| Keith Nolan | Friends Provident | 0845 641 7835 |
Ref: Ke014
Notes to Editors
About Friends Provident:
Friends Provident was originally founded in 1832 to alleviate the hardship of Quaker families facing misfortune. Friends Provident's strategy today is to operate in markets where it can deploy its award-winning strengths in technology and service to gain competitive advantage. Since its demutualisation in 2001, the Company has developed strong offerings in pensions and protection to complement its historic With Profits business, and now prioritises international growth. Friends Provident is fully committed to the principles of the FSA initiative 'Treating Customers Fairly'.
Friends Provident distributes its products through intermediaries in the UK and around the world. Its key business lines in the UK are protection and corporate pensions. Friends Provident International develops competitive savings, investment and pensions products for a broad and diverse range of markets including Hong Kong, the United Arab Emirates, Singapore and Germany.
Friends Provident owns the Luxembourg-based company Lombard, a leading pan-European life assurance company that specialises in the use of life assurance as a wealth management solution for high net-worth investors.
Friends Provident also owns Sesame Bankhall Group, a leading UK supplier of intermediary support services to financial advisers. Sesame Bankhall Group provides services to more than 12,000 financial advisers across the UK offering life assurance, mortgages and savings arrangements.
Friends Provident has a 30% stake in AmLife, an insurance subsidiary of AmBank Group, which operates in Malaysia.
Since 5 November 2009 Friends Provident has been part of the Resolution group of companies www.resolution.gg.
For more information on Friends Provident including, photos, awards, fast facts, presentations, and media contacts please visit the media section at www.friendsprovident.com/media
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Important
- This news service is for information purposes only and does not provide any form of advice, recommendation or financial promotion. Any opinions expressed by third parties are those of the third party concerned and not of Friends Provident. Friends Provident does not accept liability for any errors or omissions or for loss incurred because of reliance on information or opinions given.
- The content of the news items set out above are accurate only as of the date of issue and Friends Provident does not undertake any obligation to update them.