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. …
27th February 2015 Proposals to cut annual pension contributions limits make some sense but cutting lifetime limit makes it difficult to plan pensions properly Still leaves public sector better off than typical private sector pension savers There are better ways to use pensions to help students with debt Damage pension confidence as rules keep changing: The proposals today to cut pensions tax relief in order to fund cuts in university tuition fees are likely to cause damage to pension confidence….
24 February 2015 Protecting pensioner benefits is politically astute but also makes some sense for now Tinkering with the current package of benefits is not a solution – they could be taxed or paid from a later age, but the whole system should be rationalised A proper assessment of all later life support is needed – including social care If the Government just stops paying pensioner benefits such as Winter Fuel Payments or free TV licences, this would be the…
26 January 2015 At last the regulator has bowed to pressure for second line of defence – essential in the new era of freedom and choice Providers must ask questions and give risk warnings before customers make irreversible pension decisions Fantastic news for customers: I am so delighted that the FCA will finally force firms to take more care of their customers, asking vital questions and warning them about the risks of irreversible pension choices. At last, pension providers will…
15th January 2015 At last some good news for pensioners’ savings NS&I 65+ Guaranteed Growth Bonds on sale from today – guaranteed by the Government These are market-beating bonds with great interest rates and fully backed by the Treasury Don’t panic, but if you’re over 65 and have money sitting in a savings account, the sooner you apply, the sooner it can earn more for you National Savings and Investments (NS&I) has this morning launched its long awaited new…
14 January 2015 Survey reveals shocking lack of pensions knowledge especially among older women High proportion of pension savers have low levels of financial capability Freedom and choice won’t work if people don’t understand pensions Crucial role for ‘Pension wise’ guidance – supplemented by financial advice – to help at all ages Millions of older people – especially women – at risk of poor pensions: The shocking results of a new research report published today show that millions of people…
12 January 2015 At last the Guidance name is released – ‘Pension wise’ to point people in the right direction for their retirement journey Will need extensive publicity campaign to establish as trusted brand – this is not Advice Could be great opportunity for IFAs, helping customers appreciate relative value of independent advice and explaining hidden commissions Still need second line of defence or pensions passport to better protect customers Guidance brand name unveiled – ‘Pension wise – your money…
8th January 2015 Tesco to close its Pension Scheme – won’t reduce deficit near term but every little helps! Rising pension deficit and cost reduction pressures force closure of last FTSE100 final salary scheme Artificially depressed bond yields contribute to pension losses for thousands of staff Tesco has announced, as expected, a consultation to close its pension scheme – one of the last remaining open defined benefit schemes in the private sector. Among a string of cost-cutting measures, the company…
1 December 2014 What will the Autumn Statement announce on pensions, savings and over 50s? The Chancellor’s surprise Budget reforms last March offered fantastic news for savers. The radical reforms to pensions and more generous rules for ISAs proved so popular, this Autumn Statement can’t possibly provide as much excitement. Nevertheless, more announcements that will impact pensions and the lives of over 50s are expected and I also have a ‘wishlist’ of further reforms that may or may not happen….
The ten vital issues pensions Guidance must explain The Government’s proposed free Pension Guidance service will have a huge impact on whether the entire reform programme of flexibility and choice for pensions actually works well. Guidance is only a start, but an important start to ensuring people know what they need to consider when they are told they have reached their scheme pension age. If the Guidance works well, it can ensure people are able to make sensible choices. …