Solvency II-type rules for pensions “seriously flawed”
by Gill Montia
Story link: Solvency II-type rules for pensions “seriously flawed”
The National Association of Pension Funds (NAPF) is warning that the EU’s assessment of Solvency II-type rules for pension funds are “seriously flawed”. According to NAPF, they don’t provide an adequate test of regulations that could damage UK pensions and businesses for decades. In particular, the Association believes that the Holistic Balance Sheet (HSB) doesn’t [...]
ABI responds to the Autumn Statement
by Richard Kilner
Story link: ABI responds to the Autumn Statement
Otto Thoresen, Director General of the Association of British Insurers (ABI), has responded to the reduction in pensions tax relief contained within yesterday’s Autumn Statement. Thoresen said that whilst the organisation recognised the economic pressures the Government faced a second change in pensions tax allowance in three years was frustrating. He called on the Coalition [...]
Women likelier to work beyond retirement age
by Richard Kilner
Story link: Women likelier to work beyond retirement age
The annual Working Late Index from retirement specialist LV= has reported that the number of over 50s expecting to work beyond the state retirement age has risen from 4.5m in 2010 to 6.5m. On average, those expecting to work past the retirement age think they will do so for 6.2 years. There is a significant [...]
ABI urges pensions transparency
by Richard Kilner
Story link: ABI urges pensions transparency
The Association of British Insurers (ABI) has sent a letter to regulators in which it sets out its plan to make pension charges and costs clearer. The measures are intended to enhance pensions transparency and boost confidence amongst the public prior to the introduction of auto-enrolment in the autumn. The letter to the Pensions Regulator [...]
ABI unimpressed with Labour’s pension review
by Richard Kilner
Story link: ABI unimpressed with Labour’s pension review
Otto Thoresen, Director General of the Association of British Insurers (ABI), has responded to Labour’s policy document on pension reform. Thoresen was less than impressed with the document, expressing his view that it had a ‘back of the envelope’ feel to it and describing the document as both disappointing and hugely misleading. He went on [...]
ABI rejects Miliband pensions claim
by Richard Kilner
Story link: ABI rejects Miliband pensions claim
The Association of British Insurers (ABI) has issued a response following comments made by Ed Miliband, Leader of the Opposition, on pensions. ABI Director General Otto Thoresen said that Miliband’s claim that a 4-5% pension charge was normal was, in fact, absolutely wrong. Thoresen added that pension charges had fallen over the last decade and [...]
ABI: new code of practice for incentivised pension transfers
by Gill Montia
Story link: ABI: new code of practice for incentivised pension transfers
The Association of British Insurers (ABI) has published a code of good practice regarding Incentivised Transfer Exercises (ITEs), whereby employees are offered cash to transfer their company pensions, typically from a defined benefit to a defined contribution scheme. The voluntary code has been developed following a call by the Pensions Minister, Steve Webb, to improve [...]
Insurers broadly welcome Budget measures
by Richard Kilner
Story link: Insurers broadly welcome Budget measures
Alun Sweeney, UK & Ireland Director of leading trade credit insurer Atradius, welcomed the measures designed to support business that were announced in yesterday’s Budget. Sweeney particularly praised the cut in corporation tax and the additional investment in energy, pharmaceuticals and technology. He also welcomed the two major changes to income tax: the rise in [...]
LV= launches pensions microsite
by Gill Montia
Story link: LV= launches pensions microsite
LV= has launched a new pensions microsite aimed at providing advisers with clarity on forthcoming technical changes to pensions legislation. The site focuses on changes in four key areas: lifetime allowance, contracting out, flexible drawdown and the new carry forward rule. The main issues affecting clients are highlighted, helping advisers to maximise business opportunities by [...]
ABI encourages shopping around for annuity
by Richard Kilner
Story link: ABI encourages shopping around for annuity
The ABI has warned that many people are missing out on better retirement income by not browsing thoroughly for a better annuity. The organisation has launched a consultation aimed at helping the industry to find new ways to support people making the right choices when they retire. In September the ABI launched a compulsory code [...]
Non-transparent charges a block to auto-enrolment
by Gill Montia
Story link: Non-transparent charges a block to auto-enrolment
Around three million workers are likely to turn their backs on the Government’s auto-enrolment scheme, with over a quarter put off because they don’t trust the pensions industry. New research conducted by Populus for the National Association of Pension Funds (NAPF) suggests that one in three people will shun auto-enrolment, up from one in four [...]
Britons plan to top-up pensions in retirement
by Richard Kilner
Story link: Britons plan to top-up pensions in retirement
New research commissioned by Standard Life has revealed that many people paying into pension schemes are planning on topping up their retirement funds through additional means. Just under half (43%) plan on using investments to increase their financial comfort in retirement, and almost one in four (24%) believe that an inheritance will come to them [...]
LV= backs early access to pensions
by Richard Kilner
Story link: LV= backs early access to pensions
Saving could be encouraged by permitting earlier access to pensions, according to LV=’s retirement solutions director John Perks. Perks explained that he believed allowing people to take advantage of their pensions sooner would promote greater interest in and saving into pensions schemes. His view is supported by recent research which found that many over 50s [...]
IFAs warning on early access to pensions
by Richard Kilner
Story link: IFAs warning on early access to pensions
Early access to pension money is not without risks, according to new research commissioned by AXA Wealth. The research found that 62% of IFAs believe that earlier access would lead to clients running out of money and becoming dependent upon the state. As life expectancy continues to increase the issue of retirement and the money [...]
Over 55s to gain greater freedom in retirement
by Richard Kilner
Story link: Over 55s to gain greater freedom in retirement
Aviva’s latest Real Retirement Report has revealed that a third of retirees felt pushed into leaving work when they reached the standard retirement age. In April 2011 the Coalition Government will remove the default retirement age, fundamentally changing the nature of retirement. Every year 700,000 people reach retirement age, and the change in the law [...]
4.5m over 50s to work past retirement age
by Richard Kilner
Story link: 4.5m over 50s to work past retirement age
LV= has published its first Working Late Index, which reveals that more than 4.5 million over 50s expect to work beyond the state retirement age, by an average of six years. Just over half (55%) believe they will work no more than five years past the state retirement age and a fifth believe they will [...]
LV= gives mixed blessing to Government pension plan
by Richard Kilner
Story link: LV= gives mixed blessing to Government pension plan
LV= has welcomed the Government’s decision to abolish contracting out pensions on a defined contribution basis from 6 April 2010. Following an official submission to the Department of Work and Pensions, LV=’s head of pensions, Ray Chinn, has stated the firm’s broad support for the Government’s draft legislation. However, Chinn has raised concerns over a [...]
Pensioners see homes as pensions
by Richard Kilner
Story link: Pensioners see homes as pensions
Homes are increasingly being seen as pensions by the over 50s, according to new research from retirement specialist LV=. Although 54% of the over 50s believe that the value of their house has fallen in recent years an estimated 1.2m people may utilise the equity locked in their homes to help augment their retirement income. [...]
Short term saving rises at the expense of pensions
by Richard Kilner
Story link: Short term saving rises at the expense of pensions
People are saving more than spending due to worries about job losses and economic woe, according to the latest MoneyMood Survey from Legal & General. Six out of ten are presently saving, with just 23% (less than a quarter) spending, but despite this the number saving for a pension has declined over the last six [...]
Aviva launches pensions app
by Richard Kilner
Story link: Aviva launches pensions app
Aviva has launched a new iPhone app, to help people plan their pensions. The app, Time to Act, makes pension planning easier and more accessible and is available for free. The app is a simplified version of the Aviva Pensions Tracker which utilises an even more complete set of tools to enable pensions planning. Users [...]
