Will pension reforms be a damp squib for fund groups?

Will pension reforms be a damp squib for fund groups?

April cannot come quickly enough for many in the fund management industry, but the impact of pension reforms may not be as great as they expect, writes Kames Capital CEO Martin Davis.

Liberated by the radical pension reforms due to take effect that month, over 55s in DC pension schemes will, according to received wisdom, gleefully seize their cash and direct it post-haste into annuity-substitute products such as multi-asset income funds, property, and absolute return strategies. But, far from being the cash bonanza some are expecting, I think the new pension reforms could be something of a damp squib. Recent research suggested that, once the new freedoms are in force, almost half of those eligible would take some or all of their money out of their pension, unlockin...