17 January 2014 Steve Webb is right to delay introduction of charge cap – 2014 was too soon Cap new scheme charges to protect smaller firms’ workers but leave legacy schemes till after 2018 – and reform NEST charges to allow proper comparison Capping annuity charges is far more important anyway! Sensible decision to delay charge cap: It is good to see that Steve Webb has decided to delay introducing a cap on the charges paid by workers in auto-enrolment pension schemes. …
14th January 2014 NEW WORDING FOR PICK-A TO DESCRIBE ADVICE AND GUIDANCE The following is the alternative text I have drawn up to more accurately reflect the value of seeking advice from a whole of market independent financial adviser. It explains the benefits of using an IFA but does also point out that those with small funds may not find advice cost-effective. With larger funds or for those who qualify for enhanced rates, the IFA advice route can even…
13 January 2014 Pick-A Annuity Directory another look Suggestions to build on all the initial work It is essential to explain properly the value of independent whole of market advice My comments on the Pick-A Directory have really upset those who put it together. It is such a shame that the wording was not tested on consumer groups or shown to independent advisers before the site went live. Now that the service is launched I have had a chance to…
12 January 2013 PICA Annuity Directory is such a disappointment A wasted opportunity to really ensure customers achieve good outcomes Bias against independent advice and towards non-advice broking is dangerous PICA has just released its long-awaited Annuity Directory (called ‘Pick-A’) which is supposed to help people get better value for their pension savings in retirement. I had high hopes that this would be a major step forward to ensure customers are clear about what they need in order to achieve…
9th January 2014 Steve Webb is right to highlight inadequacies of annuities Better value and more flexible pension products are urgently required Pensions Minister, Steve Webb has been subjected to a tirade of attacks in recent days following his comments about the failings of annuities. He is accused of proposing unworkable reforms, but he is making valid points. His remarks seem to have been misunderstood. Of course the Minister understands how annuity products work, but he is highlighting that they…
8 January 2014 Lost Generation fears are real but premature Baby boomers also went through tough times but went on to thrive We need to be very careful, coming out of a few years of recession and economic turnmoil, not to become too negative when discussing the plight of younger people today. Of course, the level of unemployment among younger people is a cause of great concern, but this is not necessarily a ‘lost generation’, as is so often claimed….
6 January 2014 Pensioner benefits – Don’t axe them, tax them Consider changing the age of entitlement, rather than means-testing Pensioner benefits becoming a political football: The furore over pensioner ‘benefits’ is hotting up. As the number of UK citizens reaching state pension age soars, the cost of paying National Insurance pensions was always bound to rise. There is a political backlash against pensioner payments, but it is important to consider this issue carefully. Rather than using pensions as a…
23 December 2013 Boom time for UK economy in 2014 – 5% growth Positive surprises – higher growth, lower inflation, rising earnings, falling unemployment Economic and political cycle brilliantly aligned – by accident or design? My forecasts for UK economy by end-2014: Growth – 5% Inflation – 2% Earnings growth – 3% Unemployment – 7% – a boom with low inflation, rising earnings and falling unemployment Leading indicators show UK set for a pre-election boom: The leading economic indicators have been strong for months now and…
17 December 2013 IFS study is a wake-up call to embrace benefits of saving and working longer Headlines of younger generations being much worse off than previous generations are too negative IFS shows younger cohorts were much better off earlier in their lives but spent rather than saved – as economy picks up they can rethink their lives IFS report shows lower incomes for younger generations partly result from failure to save: Today’s IFS report has led to dire warnings that…
16 December 2013 Economic and political cycle brilliantly aligned – by accident or design? Positive surprises – higher growth, lower inflation, rising earnings, falling unemployment Last week I represented the London School of Economics at an Economics Research Council debate called the Clash of the Titans. http://www.ercouncil.org/clash-of-the-titans-2013/ The event was chaired by Andrew Sentance of PwC, former member of the Bank of England’s Monetary Policy Committee, and saw Kevin Daly of Goldman Sachs – representing Cambridge University, Stephen King of…