Watson Wyatt

Pension funds are increasingly implementing ETFs as low-cost, transparent tools for accessing new asset classes, according to consultants.

Towers Watson has started recommending its clients invest up to half of their passive assets in fundamental indices.

John Moret, director of marketing at Suffolk Life, says sophisticated and widely available tools can help IFAs give good quality and specialist advice on income drawdown.

Magnus Spence, director at Spence Johnson, says a growing DC market in the UK could open up opportunities for advisers.

Enhanced annuity sales fell 7% in the third quarter of 2009, in line with industry expectations.

ETFs are generally more expensive than many institutional index products and are an unattractive long-term investment option for most pension funds, according to Watson Wyatt.

Sales of variable annuities slumped 42% in the third quarter of 2009, research suggests.

Pensioners are likely to be worse off in the New Year, despite a drop in headline inflation figures, according to Watson Wyatt.

The Conservatives have pledged to reverse the multi-billon pound pension "tax raid" introduced in 1997 by then chancellor Gordon Brown.

Pension schemes should encourage members of defined contribution schemes to personalise their investment strategies by helping them set individual journey plans, a Watson Wyatt paper says.