ISH workers are rushing to build up pension pots with Standard Life, the Scottish insurance business said yesterday as the group announced a 24 per cent increase in sales of long-term savings products.
The figures were well ahead of expectations and Investec analyst Kevin Ryan said the government’s decision to automatically enrol most employees on a workplace pension scheme “is boosting volumes more than the market anticipated”.
Net funds flowing into the company hit £2.8bn in the first three months of 2013, up from £1.1bn for the same period last year.
Total assets under administration at the group rose seven per cent to £233.1bn during the first three months of 2013.
More than half of that amount now comes from third parties who have been largely attracted by the strong performance of Standard Life Investments, the company’s fund management arm.
However, flows into Standard Life’s corporate pensions business dipped 29 per cent to £262m during the quarter.