View more on these topics

&#39Flat-rate second pension to close gap&#39

The ABI is calling for urgent reform to the state pension by introducing a flat-rate second pension that it claims would lift state provision above the minimum income guarantee.

It warns that without fundamental change, the gap between basic state pension and the pension credit will increase, leaving up to 82 per cent of pensioners on means-tested benefits.

As part of its response to the Pensions Green Paper, the ABI says the target of spending 5 per cent of GDP on pensions could only be met if individuals&#39 savings levels are raised now.

The Department for Work and Pensions&#39 proposals for the overhaul of UK pensions have been criticised for their failure to deal with the interface between state and private provision.

ABI director general Mary Francis says: “It is vital that future pensioners feel confident about what they will get from the state and that taxpayers are assured that state provision will be affordable.

“Having the right state pension framework is crucial for the success of all the other proposals and ambitions in the Pensions Green Paper. The Government needs to address this now.”

Marshall Williams & Co principal Ian Williams says: “Public sentiment is antipension due to lack of direction from the Government and a lack of faith in the ongoing tax incentives.

“The ABI&#39s view is correct because means testing and stealth taxes have removed the incentives to save.”


Landlords maintain gearing levels in buy-to-let market

Buy-to-let lending remains at comfortable levels relative to property valuations, with less than 5 per cent of landlords having loans over 75 per cent of the value of their investment property portfolios, says Paragon Mortgages.The March issue of Paragon&#39s quarterly buy-to-let trends survey shows that the average loan to value is just 42.7 per cent, […]

Smee&#39s warning on PI for loan and general brokers

The FSA&#39s extension of mandatory professional indemnity insurance to up to 35,000 general insurance and mortgage intermediaries could stifle an already constricted PI market, Aifa has warned.Director general Paul Smee says he has serious concerns about the proposal outlined in CP174, published last week, to force advisers to have compulsory PI insurance once they become […]

SEI offers two ringfenced WP offshore funds

Scottish Equitable Inter-national is offering two new ringfenced offshore with-profits funds available to investors through its Dublin investment portfolio.SEI says it is the first firm to offer a ringfenced offshore fund which meets the requirements stipulated under the Sandler review and FSA with-profits review for transparent charges and smoothed returns.The with-profits growth fund will invest […]

You can&#39t softsoap the public

When you buy a soap powder, there is very little commitment to the product you are buying. Provided it washes your clothes effectively and without damaging them, you will probably be satisfied with your purchase and are quite likely to buy the same brand again when it has run out.But if, when you go to […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm