The government’s much heralded pensions freedoms reforms have been widely welcomed and have the potential to ensure pensions remain relevant for an ageing yet significantly more flexible, workforce in the future. Yet it is only now that the practicalities are being addressed, and for many providers it is how things will work from a technology perspective that is causing most concern.
- Providers will need to look at both their member-facing and back-end systems in their bid to help in the accumulation and decumulation period following the new pension freedoms.
- Online modellers will also be important, allowing members to play around with various financial permutations.
- Current investment administration platforms were designed for mutual funds and don’t easily lend themselves to managing fund of DC fund structures. Once changes have been made however, administration costs are expected to fall.