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Fidelity picks Parkin for push into post-retirement market
by Jun Merrett on Oct 11, 2013 at 15:19
Fidelity Worldwide Investment has appointed Richard Parkin to head up its new retirement service.
Parkin, who is head of proposition for Fidelity's DC and Workplace Savings, has been appointed its head of retirement. He will lead the development of the service for customers across its four UK business channels: Personal Investing, FundsNetwork, Retail Funds, and DC and Workplace Savings.
He will take up the role at the end of October.
Fidelity has not yet revealed what it intends to do in the space but it has previously aimed to cater for a post-retirement market.
In 2010, Gary Shaughnessy, Fidelity International's UK managing director at the time, said that UK financial services were at a pivotal point that could push asset managers like Fidelity into the post-retirement market.
In 2011 the company also made plans to expand the wrappers on its platforms to allow access to annuities through both its workplace and FundsNetwork platform.
Ed Dymott, head of business development for Fidelity's UK business, said: 'With a significant number of individuals now approaching retirement, we are committed to delivering a service which provides both greater choice and improved outcomes for this critical point in their lifetime. Unfortunately far too many in the UK are not currently getting access to the quality solutions we believe should be readily available to those approaching and in retirement.
'Over the next few years, Fidelity will be investing significantly to create a new retirement service which aims to provide our customers and their advisers with the ability to make the most of their retirement savings. Richard has significant experience in the retirement market, and we are delighted to have someone of his calibre to lead the development of this new service for Fidelity.'
Parkin added: 'For too long the default option for retirees has been to annuitise. Whilst we are pleased to see a greater adoption of open market annuity solutions which provide access to the best annuity rates, as an industry we can do better for our customers. We need to ask whether an annuity is the really the best solution available for such a high proportion of customers, especially as longevity increases and retirement lifestyles change.
'The inflexible and irreversible nature of annuities means they may not always offer people what they will need to manage the ups and downs across the whole of their time in retirement,' he said.
'The reality is that individuals approaching retirement need to look much more holistically at their needs and aspirations in retirement and consider how they best arrange all of their assets to support this. This may involve combining a range of products to ensure they achieve their goals in retirement.'
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