View more on these topics

&#39Green Paper will boost income drawdown&#39

The Pensions Green Paper has given income drawdown a massive boost by liberalising the rules governing when and how retirement income can be taken, claims pension consultantcy Towers Perrin.

The company says Inland Revenue proposals to remove the requirement to buy an annuity by the age of 75 and replace it with a requirement to use all funds to provide income mean the income-drawdown sector will grow.

Under the proposals, if a drawdown investor dies after 75, any funds remaining will have to be used to provide taxable income for a spouse or dependants but cannot be paid out as a lump sum.

Towers Perrin says this move will lead to employers switching to defined-contribution schemes as they face demands from members to exercise these flexible options as well as open market options and phased retirement.

Principal Robert Ivey says: “The Revenue proposals could potentially benefit many scheme members as they reach retirement age but the implications of some of the choices are not always straightforward and some specialist advice will be needed. Employers and trustees will not normally be in a position to give advice and should, therefore, look to make independent financial advice available.”

Recommended

Moore&#39s code

It seems hard to believe but financial services was once seen as something of a backwater in the world of City journalism. Not any more. The last few years have been a time of unprecedented change for the industry – some would say that it has been in turmoil. This it is not going to […]

&#39Criminal checks are being ignored&#39

Independent broker Mortgage Watchdog is accusing the Mortgage Code Compliance Board and FSA of failing to protect consumers by ignoring legislation requiring criminal checks on financial services employees.Mortgage Watchdog managing director Monty Burn says Home Office legislation states applicants for financial services jobs must be passed by the Criminal Record Bureau to uncover any previous […]

No faith in the majority

So, the majority of IFAs see rises in base rates and the FTSE. I do not like majorities because they are virtually always wrong.One of the tenets of my business is that I tell clients all forecasts are wrong, including mine. However, I think that most IFAs must be living on Planet Zog because it […]

Howard sets first-year target of up to 100 firms for M2

Former Maddison Monetary Management managing dir-ector Mark Howard is launching new IFA M2 Financial this week with the aim of recruiting between 50 and 100 firms to the group within the next year.M2, which will offer a fee-based financial planning service, is targeting small and medium-sized firms with the aim of creating a national presence […]

Introducing Trevor Greetham

Ryan Medlock, Investment Proposition Manager, Royal London Royal London Asset Management’s (RLAM) new head of multi-asset is officially up and running. I want to look at what expertise Trevor brings to the table and how this affects the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs). Trevor Greetham joined RLAM in April 2015 from […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com