12 March 2015 Why allowing people to unlock annuities makes sense Millions forced to buy unwanted annuities would now have an option to cash in if they need to Nobody will be forced to sell their annuity back, but they can if they need or want to The proposals to allow people to cash-in annuities that they were forced to buy under the old pension rules could prove popular for many of those who have unwanted or low value annuities. …
5 January 2015 Steve Webb calls for annuities to be cashed-in to extend pension freedom Many would love the chance to take the money instead of a tiny income But how would this work – what penalties and charges would there be for surrender? Pensions Minister, Steve Webb, has called for an extension of the radical overhaul of pensions to include existing pensioners who may have bought annuities but are not happy with their deal. In principle, I think this…
11 December 2014 FCA still fails to ensure customers are properly protected despite finding frequent mis-selling Regulator proposes more consultation and investigation instead of immediate action to protect customers Annuities irreversible, people still effectively forced to buy, but the most vulnerable being let down As annuities are insurance against running out of money if you live a very long time in retirement, those in poor health must be protected from wasting their pension funds The FCA has just published findings…
1 December 2014 A leading newspaper asked me last week to calculate some estimates of the possible or potential losses suffered by pensioners over the past 10 years as a result of buying unsuitable annuity products. They wanted an estimate of a potential base for mis-selling claims, following revelations that Aviva has already compensated some customers who were found to have been sold inappropriate annuities. Over the years, customers reaching their scheme pension age have received an annuity offer with…
30 September 2014 So many people have been asking me about the new pension changes and what they might mean, I have put together a quick Q&A to address some of these with my comments. Hope you find it of interest. There are profound implications for pension products and pension savers – as well as for regulators of course, to make sure people understand what this all means for them. If in good health, perhaps you shouldn’t buy an annuity…
11 September 2014 Budget reforms drive massive move away from annuities and into income drawdown ABI figures show 50% year on year fall in annuity sales and >50% rise in income drawdown which carries high fees Fall in annuity sales would be even greater if pension firms allowed customers to use the new freedoms properly Pension providers still failing to put customer interests at the heart of their business The Association of British Insurers has just released figures that show…
4 August 2014 Standard annuities assume purchasers are in good health – selling them to someone with heart trouble and cancer is unjustifiable. Treating Customers Fairly requires protection against such annuities mis-selling. I challenge providers and regulators to justify selling annuities without clear risk warnings or suitability checks. The case of Mr. Wayne Davies vividly highlights the injustices of the UK annuity sales process. It is the worst case I have seen of the UK annuity system failing its customers. While…
26th March 2014 Pension flexibility begins – at last more freedom, but advice needed Buying standard annuity was like only insuring your house against fire – no help if you’re flooded or burgled Wealthiest already have the opportunities introduced by the Budget – it’s right to give same freedom to all Pensions more attractive now: The debate around the advantages and disadvantages of the Budget pension reforms is still raging. Make no mistake, these reforms are a game changer. Notwithstanding…
19 March 2014 Unbelievable news – pensions and savings revolution So much of what I’ve been calling for is suddenly happening – exciting or what? Pensions and ISAs more flexible, limits more generous – a Tory votewinner After so many years of waiting for good news, suddenly so much comes at once. Like the proverbial Number 13 buses, a whole raft of policies has all come at once – and they are good news. It’s also a brilliant Budget for Tory election prospects of…
17 March 2014 A Budget wishlist for pensions and savings Exempt savings interest from tax for two years Or allow full ISA allowance in cash Allow small pension funds to be taken as cash Relax restrictions in capped drawdown to allow for ill-health Introduce new incentives to save for long-term care – ISA savings set aside for care could pass on free of inheritance tax if not spent Stop meddling with pension rules What might the Chancellor do to address the…