Norwich Union has spoken out regarding the proposed simplification of the pensions system and voiced concerns over who will pick up the bill.
Norwich Union said that the cost on insurers to implement simplification changes would be huge. Reserves are already at low points for most companies and they have to work within the 1% charging structure of stakeholder pensions.
All of this combined means just another added cost burden. Norwich Union believes that the ultimate cost of simplification will be paid for by consumers, through increased charges on other products.
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Any simplification of the pensions subject is welcome. However, consumers should not be penalised for the added complications implemented by successive governments. Neither should insurance companies.