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Steve Webb’s idea to tell people when they will die!

April 17, 2014 Ros Altmann Comments 0 Comment

17 April 2014 Government could set up a life expectancy calculator based on actuarial annuity models Any figure will only be an average – give people a range and regular updates as health changes And tell people how long they will live, not when they will die! Pensions Minister, Steve Webb, has proposed a novel way of helping people plan their retirement finances. He suggests providing people approaching retirement with information about when they can ‘expect to die’. This is supposed…

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Government announcement on buying extra state pension – Class 3A

April 2, 2014 Ros Altmann Comments 7 comments

2 April 2014 Government announces its terms for buying extra state pension – Class 3A National Insurance This looks like a good deal – about half the cost of buying an equivalent annuity Designed for those who reach pension age before April 2016 Will help people who are not included in flat-rate state pension to boost their income The Government has just announced how much it will cost people to buy extra state pension rights under the proposed new ‘Class 3A’ National…

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What’s wrong with UK insurance industry

March 28, 2014 Ros Altmann Comments 0 Comment

28 March 2014 Insurance industry under fire – what’s gone wrong? Insurers failed to realise who their customers were – relied on inertia Flawed profit models rewarded intermediaries then recouped costs from end-customers Now is the time for change – modernised, flexible products and services UK insurers have been under fire in the past few days and many must be reeling from the shock of it all. Suddenly the landscape seems to have changed. As an observer who has for so…

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Pension charge cap – another piece of the jigsaw

March 27, 2014 Ros Altmann Comments 1 comment

27 March 2014 Charges cap is important to protect smaller firms’ workers Will eventually need to control all charges, not just AMC Disappointing that NEST two-tier structure will continue to prevent easy comparison 0.75%pa charge cap on auto-enrolment default funds from April 2015 Banning penalty fees on leavers from April 2016 Banning commission payments from April 2016 As auto-enrolment spreads to smaller firms, their workers need protecting from high fees Pot follows member can’t work without a control on fees…

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Pension freedom starts – now people will need advice

March 26, 2014 Ros Altmann Comments 0 Comment

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…

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Budget ISA moves – ISA savings for care

March 21, 2014 Ros Altmann Comments 3 comments

21 March 2014 Nicer ISA savings – what could be NISA! And how about a Care ISA? As the dust starts to settle a little following the sudden Budget improvements to Individual Savings Accounts (ISA) rules, I thought it might be helpful to note down some more thoughts. Wouldn’t it be great if the new found freedoms could be used to help fund social care. An ISA tax free savings account, designated to pay for care costs, could help with the…

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Pensions and savings revolution! My wishlist comes true

March 19, 2014 Ros Altmann Comments 2 comments

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…

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Budget wishlist for pensions and savings

March 18, 2014 Ros Altmann Comments 0 Comment

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…

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ABI promises to improve annuity selling practices

March 10, 2014 Ros Altmann Comments 0 Comment

10 March 2014 Media Pressure forces ABI to make more promises to treat customers better Annuity Customers need action now – not waiting yet another year Regulator needs to act quickly to ensure proper protection, not self regulation ABI has promised to treat annuity customers better for years – still not happening in too many cases: I’m pleased to see that the media pressure is helping the ABI to realise that it must ensure that its members improve the way annuities are…

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

March 4, 2014 Ros Altmann Comments 2 comments

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