Virgin Money: Pensioners need protection against transfer risks

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Virgin Money: Pensioners need protection against transfer risks

Thu 6th Nov 2008

Virgin Money has called for better protection against transfer risks for pension savers who start using their funds as income when they retire.

Responding to the Association of British Insurers' (ABI) agreement to a 30-day target for converting pension funds into annuities, Virgin warned that turmoil in stock markets has increased the risks for savers when they transfer the funds.

It warned that the FTSE-100 had lost around 40 per cent of its value since October 29th 2007.

This means that a fund worth £100,000 last year may have lost as much as £40,000.

Spokesperson Scott Mowbray welcomed the ABI's 30-day target but called for companies to carry out transfers even more quickly.

This week, Virgin Money also announced that young entrepreneurs of the Anglia Ruskin University are being given the opportunity to help develop its pet insurance arm.

Students of the university's BA (Hons) in enterprise and entrepreneurial management will work on creating a commercial plan to increase business for Virgin Money Pet Insurance.

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