Introducing the
Aon Hewitt
This leaflet provides you with an overview of the Aon Hewitt Retirement Service.
Introducing the Aon Hewitt
Retirement Service
Employers and trustees have a number of obligations around the support they must give to members as they approach their retirement. These requirements can add substantially to an employer’s or a trustee’s administrative burden.
It can also be time-consuming to understand the details of what is current good practice as well as document and implement an effective approach for the scheme and its members (or dependants).
Why use the Aon Hewitt Retirement
Service?
The Aon Hewitt Retirement Service is a comprehensive, practical and flexible solution that gives employers and trustees valuable reassurance that they are meeting good practice.
The benefits of the service include:
O capable of being integrated with existing processes
or can be fully bespoke
O available to companies of all sizes (support that
would otherwise be too costly for the smaller employer)
O educates members about their options and
maximises member engagement
O gives access to financial advice for members that
need this (i.e. drawdown vs. annuity)
O clear, competitive and flexible pricing structure
Key points
DC regulatory guidance (code)
O Trustees will ensure that a process is provided
which helps members to optimise their income at retirement
O Trustees will clearly communicate to members
the options available at retirement in a way which supports them in choosing the option most appropriate to their circumstances
O Trustees will ensure that scheme
communication is accurate, clear,
understandable and engaging and it addresses the needs of members from joining to
retirement
Extract: The Pensions Regulator Draft Code of Practice 13
A FEW YEARS FROM RETIREMENT
Key points
New ABI Code of Conduct
ABI members are required to:
O Provide clear and consistent communications
to ensure customers are able to make informed and proactive decisions about retirement income products, and are able to shop around for the most appropriate product
O Prominently highlight enhanced annuities, and
the much higher income they can potentially offer, and inform customers whether they offer these products, and how to find out who does
How can we support you
and your members
The support required by a trustee or an employee will inevitably vary according, among other
things, to the size and type of scheme they have in place.
The website provides valuable information that
members can access at different stages of their journey to retirement. We encourage trustees and employers to give their members access to the website as early as five years from their expected retirement date.
Initially, members will receive a letter telling them that their employer or trustee has asked Aon Hewitt, to provide them with access to this secure site. This letter will include log-in details to the website. A subsequent letter will provide the member’s password.
In the years before their retirement, members are likely to want to gather more general information and explore all the options that are available. The website includes useful links, for example, to help members estimate the amount they could receive in State pension, or to find pensions they have had with previous employers.
Website
–
www.aonannuityfinder.co.uk
As retirement comes closer, members will value more specific information and can use the website to request their annuity quote. The site retains information that a member enters so that it is available on their next visit, when it can be updated, if necessary.
The site brings all the information together in one place and is easy to navigate. It also includes tools which can be downloaded – the budget planner, or which are interactive – the enhanced annuity indicator. We know that there is a lack of understanding of different annuity options and in particular the availability of enhanced annuities. This tool clearly illustrates how various medical conditions impact on income levels.
Booklets
We have produced a range of booklets that provide general information alongside practical tips. These five brochures take members step-by-step through the decision-making process from around five years from retirement until they stop work.
Clear and structured contents mean that a member will be able to easily access specific information precisely when they need it, for example, on how to trace or consolidate pensions from previous employers.
Helpline
– 0800 107 0392
Alongside accessing information online or in the brochures, members can also contact a member of the Annuity Team, if they have specific questions. This can help clarify complex or detailed points and provide valuable reassurance to the member.
APPROACHING
RETIREMENT
READY TO
RETIRE
Example Word documents
Contact Us
If you need further information about the Aon Hewitt Retirement Service please contact:
Helpline number: 0800 107 0392, or
Aon Annuity Finder
Aon Annuity Finder provides the employee
with information about the support that is
available to them in the run up to and into
retirement.
Downloadable tools, calculators and guides
to re-emphasise the importance of
Open Market Option (OMO), health and
benefits shaping.
Published by Aon Consulting Limited
Copyright © 2013 Aon Consulting Limited. All rights reserved.
Registered office: Briarcliff House, Kingsmead, Farnborough, Hampshire GU14 7TE Registered number: 03127195
Aon Consulting Limited does not accept or assume any responsibility for any consequences arising from any person using or relying on this information. Authorised and regulated by the Financial Conduct Authority.