An adviser has challenged pension providers over their refusal to disclose income yields on pension funds.
Core Financial partner Trevor Whiting has contacted Standard Life, Aviva and Scottish Life questioning their decision not to disclose the information. He argues it would help advisers to determine whether the investment is good value or not.
However, the providers say because the majority of their pension funds do not pay out an income and instead re-invest members’ money, an income yield figure would be of limited use to investors.
Providers are under no legal or regulatory obligation to publish yields on a regular basis.
Whiting says: “Transparency is key here and this information is really important for advisers. Markets are moving sideways and if you do not know what the yield is, how can you discern whether an investment is good value or not?”
A Standard Life spokesman says: “Yields for insured pension funds are not something Standard Life currently provides. We believe this is consistent with the majority of the pension industry and are not aware of any significant demand for yields for our non-distributing pension funds.”
An Aviva spokeswoman says: “We do not publish this information because pension fund income yields are automatically re-invested for growth and the money is not available to take out as an income. Therefore the value of quoting a yield would be limited.”
Scottish Life investment marketing manager Lorna Blyth (pictured) says: “Our pension funds do not pay out an income to customers, so the income yield is not particularly relevant for them. We are able to calculate the figures and we will make them available on request, but we will not put them on the factsheets.”