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 [...]
Paternoster forecasts strong growth in pension buyouts
by Gill Montia
Story link: Paternoster forecasts strong growth in pension buyouts
Paternoster, the company that acquires pension schemes, is expecting strong growth in the pension buyout market, during 2008.
The firm’s chief executive, Mark Wood, is forecasting that acquisitions in the sector will at least double in value during the year.
The total market for 2007 is estimated to have been between £3 billion and £3.5 billion but [...]
LV= launches flexible retirement business
by Gill Montia
Story link: LV= launches flexible retirement business
LV= (formerly Liverpool Victoria) has launched a new flexible retirement solutions business.
The move follows LV=’s acquisition of Tomorrow (formerly GE Life) from Swiss Re, the closed life funds conslidator, in May of last year.
Tomorrow is one of the UK’s leading providers of flexible retirement solutions, selling £785 million of new single premium business in 2006.
The [...]
NAPF Deals Further Blow For Pension Plans
by Stewart Douglas
Story link: NAPF Deals Further Blow For Pension Plans
The National Association of Pension Funds has today dealt a further blow to the future of private pension schemes with the forecast that the next five years will see more widespread closures of final salary company pension schemes, as a result of longer lifespans post-retirement and an ageing population.
According to the findings of its annual [...]
Delay possible for Personal Accounts Pension scheme
by Gill Montia
Story link: Delay possible for Personal Accounts Pension scheme
The Government’s personal accounts pension scheme, which is scheduled for launch in 2012, could be delayed.
In an interview on the BBC’s Money Box programme, Tim Jones, chief executive of the Personal Accounts Delivery Authority admitted there is a “possibility” of a delay.
The new scheme applies to those earning between £5,000 and £33,500 and will require [...]
ACA recommends “middle way” in pension reforms
by Gill Montia
Story link: ACA recommends “middle way” in pension reforms
The Association of Consulting Actuaries (ACA) has criticised proposed reforms to the UK pension system contained in a Bill due to receive its second reading in the House of Commons next week.
The association believes the Government’s plans do not go far enough to encourage employers to offer pensions based on career earnings.
In its report, the [...]
Sipp reforms applauded by FSA
by Gill Montia
Story link: Sipp reforms applauded by FSA
The Financial Services Authority (FSA) has welcomed the Government’s proposed changes to self-invested personal pensions (Sipps), which could allow protected rights funds to be self-invested in the future.
The Department of Work and Pensions is holding a consultation on the changes, which should be completed by February of next year, and if the changes go ahead [...]
Sipps providers evade freedom of choice
by Gill Montia
Story link: Sipps providers evade freedom of choice
Fidelity FundsNetwork, the investment website, is suggesting that some self-invested personal pensions (Sipps) are requiring policyholders to make minimum investments into insured funds.
Using figures from Defaqto, which provides research services to financial professionals, Fidelity has calculated that 14% of the 72 Sipp providers listed have a contract that demands a minimum investment into the company’s [...]
Retirement prospects governed by lack of knowledge
by Gill Montia
Story link: Retirement prospects governed by lack of knowledge
New research from Abbey Savings indicates that over one-half of UK adults do not know how much money they need for their retirement.
Even amongst the over 65s, who are most likely already retired, 53% of those surveyed could not answer the question.
According to the research, 16% of respondents believed that they would be able to [...]
AXA launches IHT aware pension option
by Gill Montia
Story link: AXA launches IHT aware pension option
AXA Wealth Management is introducing a new scheme that will allow pension funds to be held in trust for up to 80 years following the death of an investor.
The new option will enable pension assets to form part of a person’s estate while at the same time reducing risk and liability for Inheritance Tax [...]
Pensions First launched to assist defined benefit schemes
by Gill Montia
Story link: Pensions First launched to assist defined benefit schemes
A new company is being launched, which aims to help pension schemes balance their books.
Pensions First will be chaired by Amelia Fawcett, the former vice-chairman and chief operating officer of Morgan Stanley.
Its managing partner is Timothy Lyons, a former banker at Credit Suisse First Boston and Salomon Brothers.
The new business aims to overcome issues [...]
Gender Pension gap widens
by Gill Montia
Story link: Gender Pension gap widens
Research from Scottish Widows confirms a significant difference in the pension prospects of women and men.
Apparently, only 41% of women earning over £10,000 a year currently save into a pension plan, compared with 54% of men.
The figures indicate that the gender pension gap is getting worse, as the proportion of men making adequate pension provision [...]
