Contracting-out reforms cause concern for insurers

Trevor Matthews, chief executive of life and pensions at Standard Life, says while it is now generally accepted we need to get people saving more there was never going to be an easy answer to this problem, so yesterday’s white paper is a reasonable outcome. But he adds: “There are still specific aspects of the government’s proposals which require further consideration. As for example, the loss of contracted out rebates to DC pension schemes will result in £3bn a year being diverted away from funded pensions.” And Francis McGee, head of corporate affairs at Aegon, shares the concerns alt...