(January 17, 2014) — Former UK pensions minister Lord Hutton has joined London-based consulting firm Redington to help the firm’s push to creating a sustainable defined contribution (DC) model.
Speaking to clients last night Hutton, who was secretary of state for Work and Pensions between 2005 and 2007, said the DC market faced huge challenges, but with concerted effort and leadership from the pensions industry, they could be overcome.
“Britain is changing and longevity is the biggest factor,” Hutton said. “Longevity will change Britain forever. This is fabulous—but we have to have a plan.”
The former cabinet minister warned that politicians would try to effect change through rafts of policy changes. “The danger is that politicians will say legislation is the answer and it is not,” he said. “There is no magic wand—we need leadership and the innovators in the sector will prosper.”
He applauded Redington’s RedSTART initiative that sees consultants visit schools and educate children about financial planning. “Some people seem to be stuck in a mood of defeatism about pensions—I do not agree.”
Elsewhere, aiCIO has learned that Peter Ball, head of investment consulting at JLT Employee Benefits, has left the company. The move comes barely two years after Ball quit JP Morgan Asset Management as the head of UK institutional sales to take on the role at the growing consulting firm.
Sources contacted by aiCIO expressed their surprise at the departure.
Last year, JLT Employee Benefits’ parent company reported that in the six months to the end of June this part of the business delivered a 21% increase in revenues to £115 million of which 8% was organic. The company’s annual report said trading profit had grown to £21.1 million, marking an increase of 16% over the same period in 2012.
A spokesperson for JLT confirmed the departure. Ball was not reachable for comment.
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