LONDON, April 30 (Reuters) - British financial services group Standard Life plc said the UK’s introduction of automatic enrollment of workers onto company pension schemes has helped boost business flows this year.
In a trading statement on Wednesday, Standard Life said its assets under administration rose 1.5 percent in the first quarter of the year to 247.8 billion pounds ($417.43 billion), driven by net inflows of 2.4 billion pounds.
However, a move by the UK government to liberalise how retirees use their pension pots prompted a 50 percent fall in Standard Life’s annuities after the move was announced in March.
The reforms mean retirees will no longer be forced to buy an annuity on retirement and will be free to invest their pension pots as they see fit.
“While it will be some time before long-term trends become clear, the negative profit impact of the changes will reflect the relatively small size of our annuity business,” the group said.
$1 = 0.5936 British Pounds Reporting by Chris Vellacott