Zurich launches two pension trusts
by Gill Montia
Story link: Zurich launches two pension trusts
Zurich has launched two new pension trusts: the Pensions Discretionary (2 years) Trust and the Pensions Discretionary (80 years) Trust.
Both trusts aim to give customers flexibility in their estate planning.
In the case of the Pensions Discretionary (2 years) Trust, benefits must be paid within two years of death, thus avoiding Inheritance Tax liability.
Alternatively, the […]
Aegon and Scottish Widows hike charges on “paid-up” pensions
by Gill Montia
Story link: Aegon and Scottish Widows hike charges on “paid-up” pensions
Royal London, the UK’s largest mutual life and pensions company, has been investigating pension plan charges on policies that are “paid-up”.
The research reveals that large numbers of people who have contributed to group personal pension schemes and opted not to transfer their funds to their new pension arrangements when they change jobs, are paying high […]
NAPF lobbies employers to promote their pension schemes
by Gill Montia
Story link: NAPF lobbies employers to promote their pension schemes
The National Association of Pension Funds (NAPF), which represents the UK’s workplace pension providers, is encouraging employers to help staff understand the benefits of their pension schemes.
In a recent survey, the NAPF found that 29% of all employees with access to a workplace pension (members and non-members of schemes) were unaware of pension tax relief.
Meanwhile, […]
NU increases risk factors in annuity pricing
by Gill Montia
Story link: NU increases risk factors in annuity pricing
From November of this year, Norwich Union (NU) will be including clients’ postcodes, marital status and use of tobacco in its method of pricing its annuities, which give an annual income for life in exchange for pension savings.
NU annuity prices are currently calculated on the basis of a person’s age, gender and the size of […]
Prudential launches low cost FundSIPP
by Gill Montia
Story link: Prudential launches low cost FundSIPP
Prudential has launched a lower cost FundSIPP option that provides direct access to 1,100 funds through supermarket Cofunds.
It is being offered through both the personal pension and income drawdown elements of Prudential’s Flexible Retirement Plan.
A maximum of 20 Cofunds can be chosen and the fund choice also include Prudential’s existing insured funds, such as […]
Pension bodies challenge HMRC on VAT
by Gill Montia
Story link: Pension bodies challenge HMRC on VAT
The National Association of Pension Funds (NAPF) has joined forces with Wheels Common Investment Fund (WCIF), which manages private pension schemes for Ford, Jaguar and Land Rover to mount a legal challenge over VAT.
HM Revenue & Customs (HMRC) currently collects VAT on the investment management services supplied to occupational pension funds and WCIF and NAPF […]
New powers for Pensions Regulator as buy-outs surge
by Gill Montia
Story link: New powers for Pensions Regulator as buy-outs surge
A recent surge in the acquisition of pension schemes has prompted the Government to install new powers in the Pensions Regulator.
Trustees of company pension schemes have become increasingly keen to offload the responsibilities and balance sheet liabilities of company pension schemes but the Government is keen to ensure that schemes are not treated as commodities, […]
Dramatic reduction in UK pension contributions
by Gill Montia
Story link: Dramatic reduction in UK pension contributions
Over the past year, UK workers have almost halved the amount they pay into their pensions.
Research from Prudential shows that employees were putting an average of £279 a month into their private or company pension schemes at this time last year, since when the figures has declined to £145.
According to Prudential, employees were not saving […]
Pension cover for VSO participants
by Gill Montia
Story link: Pension cover for VSO participants
The Government has agreed to pay the pension contributions of public sector workers who opt to take a career break by working as a volunteer abroad.
A £13 million project is being set up to help increase public sector involvement in such work.
The scheme is open to any member of a UK public sector pension and […]
Pension reforms triple in cost
by Gill Montia
Story link: Pension reforms triple in cost
According to an exclusive report by news agency, Reuters, the cost of the Governments proposed pension reforms has risen 300%.
The cost of setting up the “Personal Accounts” scheme now stands at around £2 billion, up from an initial estimate of £500 million.
Personal Accounts are scheduled for introduction in 2012, at which point workers will be […]
Personal Accounts pose threat to existing pension schemes
by Gill Montia
Story link: Personal Accounts pose threat to existing pension schemes
Pension experts are continuing to express concerns over the Government’s plans to reform the private pension system.
According to investment firm, Fidelity International, the introduction of Personal Accounts in 2012 could mean that a large numbers of employees lose their existing schemes.
Personal Accounts are seen by the Government as a means of avoiding a looming pension […]
AFIFA cautious over pension reforms
by Gill Montia
Story link: AFIFA cautious over pension reforms
The Association of Independent Financial Advisors (AIFA) is petitioning the Chancellor of the Exchequer, Alistair Darling, not make “radical changes” to the pensions market in next week’s Budget.
Chris Cummings, director general of the Association, is broadly in support the Government’s pension reforms but believes that they require “more clarification”.
For example, some workers will be best […]
Staff remain loyal to company pension providers
by Gill Montia
Story link: Staff remain loyal to company pension providers
A recent survey by the National Association of Pension Funds (NAPF) has revealed that in terms of workplace benefits, a company pension is the most important incentive an employer can offer.
Occupational pensions can also benefit a business in terms of staff loyalty, with 49% of employees questioned saying they would feel greater loyalty to their […]
Pensions Regulator challenges assumptions on longevity
by Gill Montia
Story link: Pensions Regulator challenges assumptions on longevity
The chairman of the Pensions Regulator, David Norgrove, has made it clear that he is expecting pension fund Trustees to review their liabilities in the light of longer life expectancy.
The regulator has for some time voiced concerns that many final-salary pension schemes are underestimating the longevity of their members and from now on they should […]
Pensions Regulator gets real on life expectancy
by Gill Montia
Story link: Pensions Regulator gets real on life expectancy
Pension fund liabilities are about to increase because the Pensions Regulator will be instructing all UK providers to use realistic life expectancy forecasts.
A new mortality standard is to be announced next week in a consultation document that could affect over 99% of pension funds.
Its proposals could increase stated liabilities by billions of pounds. For companies […]
Court of Appeal backs pension campaigners
by Gill Montia
Story link: Court of Appeal backs pension campaigners
The Court of Appeal has ruled in favour of workers who claim that misleading information from Government was instrumental in their losing out on pension benefits.
Yesterday’s ruling followed a High Court case in 2007 that found the Government to be at fault in helping to mislead up to 125,000 workers whose pension schemes went into […]
Pension scheme contributions set to rise
by Gill Montia
Story link: Pension scheme contributions set to rise
New research from Skandia, the pension and long-term investment provider, shows that nearly 65% of financial advisers questioned in its survey believe that pension contributions will increase during the next three years.
Around one-third of the 500 experts questioned expect there to be no change in the level of contributions, while just 3% expect to see […]
Pension funds ride out stock market volatility
by Gill Montia
Story link: Pension funds ride out stock market volatility
According to Mercer, the financial consultancy, the value of pension schemes has risen in the FTSE 100, despite recent stock market volatility.
On Tuesday of this week, the effect of market movements on the UK’s largest company pension schemes left them showing an aggregate deficit of £13 billion, as compared with a deficit of £25 billion […]
Pension providers knuckle-rapped over annuities
by Gill Montia
Story link: Pension providers knuckle-rapped over annuities
Pension providers are being urged to improve the services they offer to their annuities clients.
According to the Association of British Insurers’ (ABI) Pension Maturities Statement of Good Practice, pension funds should be sent to annuity providers within 14 days of a person’s retirement.
However, latest research from the Prudential Retirement Income Panel indicates that many […]
Personal Account pensions may tempt employers to reduce contributions
by Gill Montia
Story link: Personal Account pensions may tempt employers to reduce contributions
The Government’s plans to bolster pension savings with the introduction of Personal Accounts have not won the hearts and minds of Independent Financial Advisers (IFAs).
In a poll by Scottish Life, 87% of advisers questioned believe the introduction of personal accounts will lead to employers levelling down contributions.
That is to say employers who have previously […]
