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Back office to feel the strain of ‘freedom day’

Back office to feel the strain of ‘freedom day’

Much of the strain from the incoming pension changes will fall on back office functions, specialist Tim Taylor has warned, adding that providers needed to anticipate increased activity.

Mr Taylor, chief marketing officer for workplace technology firm EG Solutions, said pension providers would need to focus on back office capabilities to cope with a potential surge in demand.

He said: “With an expected drop in annuity sales happening at the same time as a huge influx of customer queries, as well as a number of new products being rushed to market, pension providers need to ensure that they are able to address this increase in volume of activity and administration.

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“The responsibility for this will fall on the back office, which plays such a critical role for customers and employees.”

The back office includes a range of processes, such as account creation, pension processing, savings and investments, fraud and risk, customer complaints and case management.

Adviser view

Kevin Morgan, director of Hertfordshire-based Consilium Financial Planning, said: “One should have robust back office systems in place, not just mindful of the world after 6 April.

“Our view is to avoid the bells and whistles and go for something that works.”