18 March 2015 We had the Pensions Revolution last year, now comes the Savings Revolution 95% of savers will pay no tax on their savings – will be popular 5m will be allowed to sell their annuity – that’s great news But cutting Lifetime Allowance for pensions is really bad policy Lifetime limit should only apply to DB, but abolished for DC So there we have it. The last Budget before the General Election. A mix of moves to please…
15th March 2015 The pensions revolution rolls on! Pension freedoms extended to current pensioners too At last, some hope for millions of people trapped in products they never wanted to buy Of course there are risks, but Regulator and Pension Wise can help protect customers The Treasury will consult on how best to establish a market for second-hand annuities. This will be popular option with many of the five million or more people who have bought annuities in recent…
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. …
11 March 2015 Overcoming barriers to later life working can boost prospects for old and young Government needs a strategy for adult skills, career reviews and must improve JobCentres Older workers are good for the economy, good for business and good for younger workers too My Business Champion for Older Workers Report, published today, explains the case for ensuring the over 50s can stay in employment if they want or need to. The Report ‘A New Vision for Older Workers…
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…
22 February 2015 Having more over 50s in work is not a threat to younger people’s wages or employment – it is essential for economic progress Studies suggest more older people in employment improves employment and wages for the young In our ageing population, we should welcome higher employment levels for over 50s – if they shift to part-time that may depress average wages but is not a concern long-term Concerns about rising labour force participation by older workers being…
2 February 2015 Government considering savings incentives for social care Possible ways to incentivise care saving schemes: 1. Care ISA 2. Tax free pension withdrawal 3. Care saving in auto-enrolment Could help millions of middle income families not just the well-off Government must tackle lack of care funding: Are Ministers finally waking up to the need to help people save to pay for social care? I do hope so. It seems they may be considering savings incentives, to help…
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…
20 January 2015 Action to address care crisis cannot wait any longer Elderly people are suffering due to council and care company cost-cutting All parts of the system are failing and Government has not yet offered solutions Tax incentives to help families save for care costs are needed as £72,000 cap is too high for affordable insurance Care ISAs, Family Care Plans and Workplace Savings free of Inheritance Tax Use auto-enrolment and new free Guidance to kick-start care savings There…