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

February 18, 2014 Ros Altmann Comments 0 Comment

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

February 14, 2014 Ros Altmann Comments 2 comments

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

February 12, 2014 Ros Altmann Comments 2 comments

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

February 4, 2014 Ros Altmann Comments 0 Comment

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?

February 2, 2014 Ros Altmann Comments 1 comment

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?

January 31, 2014 Ros Altmann Comments 2 comments

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

January 24, 2014 Ros Altmann Comments 2 comments

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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Rising pressure for proper pension reform – Money Mail joins calls for fairer pensions

January 22, 2014 Ros Altmann Comments 0 Comment

22 January 2014 Pressure for pension reform really building up A great chance for consumers to get better value pensions Policymakers and the pensions industry need to wake up to the problems and act now Today, the Daily Mail’s Money Mail has begun a campaign for better and fairer pensions. The pressure on the pensions industry is building up as another national newspaper launches a manifesto for change that would ensure far better value for customers. http://www.thisismoney.co.uk/money/pensions/article-2543615/5-radical-steps-stop-great-pensions-rip-off.html?ICO=most_read_module How long can…

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Campaign for Annuities Reform

January 19, 2014 Ros Altmann Comments 0 Comment

19 January 2014 Sunday Times calls for urgent action to address annuities market Please sign the petition to call for reform – You can sign here: https://www.formstack.com/forms/?1662003-GfcIepCLc4 More than 1000 people every day at risk of buying the wrong annuity and thousands of widows will lose out It’s great to see the Sunday Times running a campaign for annuities reform. This huge market is not working well for its customers and reform is required quickly. Many people just buy the…

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Pension charge caps

January 17, 2014 Ros Altmann Comments 0 Comment

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. …

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