Boston, MA 08/27/2014 (wallstreetpr) – On August 26, 2014, in a survey report brought out by SEI Investments Company (NASDAQ:SEIC), it was revealed that the U.K pension programs are still going through significant transformations. In fact, following the pension alterations that were declared in the U.K. budget in 2014, the pension schemes continue to experience the critical modifications, with almost 66% if trustees are expecting to modify their default scheme within the coming one and half years.
The survey
The poll reviewed the employers and trustees on their present move towards the “defined contribution (DC) pension scheme governance.” All the more, the poll also surveyed them on their reaction to the pension restructurings revealed in the U.K. 2014 budget.
Findings of the survey
SEI Investments Company (NASDAQ:SEIC) published the survey results which unveiled some significant findings. 62% of the respondents look forward to seeing the pension plan members use a resilient drawdown. On the other hand, 25% of them came up with the fact that the members will buy an annuity. Further, 55% of those surveyed revealed that they believe the members might take out a tax-free cash sum while retaining the rest invested until any potential necessities crop up. In addition, 40% of the respondents admitted that they consider the pension scheme members may select to receiving the total pot as a cash lump sum.
The comments by Ashish Kapur
While commenting on the survey results, the head of solutions for SEI Investments Company (NASDAQ:SEIC)’s Institutional Group in the EMEA region, Ashish Kapur, stated that people now show the trend of surviving longer and working more flexibly. He also stated that the default investment tactic targeting an annuity purchase at retirement time, in fact, overlooks the fact that most of the members of DC scheme may not all of a sudden discontinue working. Also, the investment strategy ignores the fact that majority of them may need access to their pension funds promptly.
