PensionsSep 16 2014

Friends, L&G and Zurich to use ‘pension tracker’

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Three of the UK’s largest pension providers have signed up to include consultancy Hymans Robertson’s online ‘pension tracker’ system in their proprietary administration systems.

Defined contribution members using Legal & General, Friends Life and Zurich systems will now have access to the ‘Guided Outcomes’ system, which helps them plan how much they need in retirement and keep track of their progress towards that goal.

Described by Hymans Robertson as “a form of defined ambition”, it was launched last year and provides real time data on pension pot savings and suggestions on switching to other funds or increasing contributions if users are falling behind targets.

Under the deal, the providers’ corporate clients who also work with Hymans Robertson will be able to provide the system to employees who are saving into the company’s DC scheme at no extra cost.

James Verner, partner at Hymans Robertson, commented that the Budget changes have brought to the forefront how people plan for their retirement and workers need to know what target pension pot to save for and how to achieve that goal.

“By building the important integration points between GO and the providers’ systems, we can ensure that employees can base decisions on up to date and accurate information,” he added.

Helen Buchanan, managing director of distribution and marketing at Legal & General, said: “While the budget reforms have placed great emphasis on how people spend their retirement savings, there is still work to be done on how best to save in the pre-retirement years.

Stephen Lefley, distribution director at Zurich, pointed out that just saving minimum contribution levels will not lead to an adequate retirement income. “Savers could be very disappointed when they reach old age and discover that they have not achieved their desired levels of savings.