Pensions administration careers
The pensions industry has experienced considerable growth over the past 10 years. It is now a more complex, challenging and exciting industry to work in. Financial services is part of almost every aspect of commercial and personal life.
The term commonly associated with a pensions administrator job is 'cradle to grave'. Once a pension has been set up with a company, it is usually nurtured until retirement or death. The insurance market is always on the look-out for experienced pensions administrators. With an all-round exposure to the pensions market, your career is likely to be safe, secure and prosperous.
Key responsibilities
A pensions administrator manages the operation of group and personal pension schemes and provides a high quality of service to new and existing customers. Generally, customers are independent financial advisers (IFAs) who act as brokers between the life assurance company and the organisations or individuals who take out the pension scheme.
The work involves ensuring the accurate and efficient administration of the schemes. Updating records, providing statements and processing retrials are key aspects of the job. It is not all paper-pushing. In fact, 50% of the role involves planning and formulating ideas and thoughts about the policy.
A pensions consultant job involves servicing in much the same way as an account handler and has a lot more face-to-face contact with clients. A pensions administrator is more office-based and carries out much of his work by telephone.
Pensions careers and skills
Liaison with other departments to ensure compliance with the legal and regulatory aspects of pensions administration is a key part of the job and often involves the training of administrative staff in new procedures. The ability to work as part of a team to organise priorities and meet deadlines is an important skill.
Technical skills required include the ability to work with numbers, experience of final salary and money purchase. A methodical approach to work and good interpersonal skills are vital.
At present, the insurance market is buoyant and pensions administrators are in high demand. Approximately 70% of the work is on a permanent basis, and a further 30% is contract work. Work available for temporary workers ranges from overflow of work to maternity cover and sickness.
Companies that recruit graduates are employee benefit consultancies, self-managed schemes and insurance companies. They generally recruit graduates of any degree discipline but certain companies may prefer a degree in business studies, management, mathematics or economics.
Graduate pensions careers
Trainees usually gain experience in several departments during the first 12-18 months of their training. If you decide to work on the pensions benefit side in a self-managed scheme or consultancy, you may be required to study for the Pensions Management Institute (PMI) qualifications.
With six months experience an entrant could expect salaries of between £18,000-£25,000 plus benefits. Manager posts might offer packages in the region of £50,000, even for part-qualified staff. Another career route is to take the FPC (Financial Planning Certificate) and go into a more advisory role, or become a team leader.
Fast-track trainee programme exist for graduates in pensions administration with life assurance companys. Graduates could expect to progress to team leader level with staff responsibility in administering executive pensions. The role could involve generating and implementing ideas to customer service.
Transferable business skills and thorough grounding of the pensions market make experienced pension administrators highly sought-after individuals.
