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    From Ros Altmann:economist and pensions,
    investment and retirement policy expert

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    Author: Ros Altmann

    What’s the verdict on 5 years of record low rates and QE?

    What’s the verdict on 5 years of record low rates and QE?

    Brilliant for powerful groups but has caused economic distortions and increased inequalities Each £100,000 mortgage now costs £3300 a year less, saving borrowers about £19,000 since 2008 Savers with £100,000 in Cash ISAs lost £4000pa income and lost total of £18,500 since 2008 What happened 5 years ago?  On March 5th 2009, the Bank of England cut interest rates to 0.5% and started creating billions of pounds of new money from thin air (calling this ‘Quantitative Easing’ or QE) which…

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    Rejoice or despair? Five years of record low rates and QE

    Rejoice or despair? Five years of record low rates and QE

    28th February 2014 It is almost exactly 5 years since the Bank of England cut short-term interest rates to 0.5% and started printing billions of pounds to force long-term interest rates lower.  Good news for some?  Dreadful for others.  Should rates be rising or stay where they are? TEN REASONS TO REJOICE – these policies are great and have had tremendous benefits Borrowers have had a bonanza with mortgages getting cheaper and cheaper, encouraging people to borrow far more than…

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    Polish pension confiscation – a threat to funded private pensions or a one-off?

    Polish pension confiscation – a threat to funded private pensions or a one-off?

    Pensions pole-axed with hardly any fuss! Polish Government transfers long-term private pension assets to help short-term public finances As former Finance Minister denounces pre-funding of pensions as too ‘costly’ is this a fundamental challenge to all funded pensions and what safeguards could help? The Polish government’s confiscation of private pension assets has gone ahead almost unnoticed. Eur36 billion of Polish Treasury bonds held by Poland’s second pillar of mandatory private sector pension funds (called OFE), comprising more than half the assets…

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    Pension charges – don’t be lulled into a false sense of security

    Pension charges – don’t be lulled into a false sense of security

    18 February 2014 DWP report on pension charges shows importance of introducing a cap Workers in small firms need protecting from rising charges as small funds pay higher fees Labour TER cap for new schemes makes sense but don’t set too low initially NEST reforms needed – and AMDs should be banned Summary DWP report on pension charges shows large schemes have lowest charges As auto-enrolment spreads to smaller firms, their workers need protecting from high fees Labour is right that…

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    FCA Review

    FCA Review

    14 February 2014 FCA Review is welcome but customers need urgent action not another review More delays mean more consumer detriment as companies sell unsuitable annuities to customers who do not understand the complex issues and jargon Need suitability checks and ban commission for all annuity sales to remove bias against advice The FCA’s Thematic Review of Annuities is certainly welcome.  Its findings that the market is not working well are hardly a surprise, given the extent of media coverage…

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    FCA annuities review preview

    FCA annuities review preview

    12 February 2014 FCA Annuities Review is bound to find serious failings  Annuities scandal must be ended to ensure better value pensions Annuities are sold as a ‘no-risk’ product, suitable for all but are actually high risk for those who buy unsuitable, irreversible pension income The FCA must act urgently as Treating Customers Fairly is about more than just ‘shopping around’ Providers must make suitability checks, give risk warnings and fair charges – currently they are not bothering to check and…

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    Analysing BoE’s statistics on mortgage and savings interest rates

    Analysing BoE’s statistics on mortgage and savings interest rates

    4 February 2014 No surprise there’s a housing bubble as latest Bank of England figures confirm bonanza for mortgage holders 100,000 Mortgage borrowers £3,300 a year better off Savers with £100,000 saved up are now £4,000 a year worse off Analysing the Bank of England’s statistics on interest rates in mortgage and savings markets since 2007 shows fascinating results.  The extent of income gains for mortgage borrowers is startling and the losses for savers are significant.  Those with the largest…

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    Are annuities fit for purpose?

    Are annuities fit for purpose?

    2 February 2014 Last week, there was an important debate in the House of Lords, organised by Baroness Sally Greengross, head of ILC-UK, sponsored by Legal and General and attended by annuity providers, brokers, advisers and consumer groups.  The topic was ‘Are Annuities fit for Purpose?’ On the panel were Tim Gosden and Kerrigan Proctor of Legal and General, Dan Hyde from the Daily Telegraph, Sue Lewis of the Financial Services Consumer Panel, Tom McPhail of Hargreaves Lansdown, Jane Vass…

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    Prolonging the party – who wants rates to rise?

    Prolonging the party – who wants rates to rise?

    31 January 2014 Bank of England statistics confirm bonanza for mortgage holders Mortgage borrowers may be £3,300a year better off and savers over £4000pa worse off Low rates are huge help for mortgagees – no wonder so many don’t want rates to rise Analysing the Bank of England’s statistics on interest rates in mortgage and savings markets since 2007 shows fascinating results.  The extent of income gains for mortgage borrowers is startling and the losses for savers are significant.  Those…

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    Pensions crisis is even worse for women than men

    Pensions crisis is even worse for women than men

    24 January 2014 TPAS report shows pensions crisis is worse for women than men Women are second class citizens when it comes to pensions Women in their late 50s or older have lost out most in both state and private pensions Many women do not yet know their state pension age is rising – Government needs to inform women urgently about state pension changes Women lose out most in both state and private pensions:  The Pensions Advisory Service (TPAS) Survey,…

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