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&#39IFAs liberated&#39

The Green Paper&#39s simplification of the pensions regime will liberate IFAs to return to being pensions salesmen, according to Standard Life.

The time frame for selling a pension will be reduced from 7 to 8 hours to 3 to 4 hours which will allow IFAs to advise people with monthly contributions as low as £75 per month, says Standard Life senior technical manager John Lawson.

While Norwich Union welcomes the Green Paper&#39s promise to consult on the 1 per cent price cap in the new year when the Government consults on Sandler next year as a chink of light.

The Government will also consult on the regulation of equity release mortgage products and home reversion plans, which have so far remained outside of regulation so as to create a level playing field.

The proposals also include plans for a new pensions regulator to proactively protect the interests of members of occupational schemes, and the Government will consult on whether Opra will remain or be completely replaced.

The unloved minimum funding requirement introduced in the wake of the Maxwell scandal is to be replaced by a more flexible proposal for scheme specific regulation.

Deferring the state pension will be made easier, and the Government proposes to allow people to choose between an increased state pension or &#45 for the first time &#45 allow them to take a single taxable lump sum.
Contracted-out benefits will also be simplified.

Immediate vesting will also be encouraged so that all employees are entitled to benefits on joining a firm. But the Government also says members should be allowed to transfer pensions pot into a stakeholder. A move providers say they would not welcome as it could lead to a rash of very small amounts to manage.

Lawson says: “From a private pensions point of view this covers nearly all of our concerns. Administration and communication with customers will be easier.”


Manor Park – Guaranteed UK Capital Growth Fund – January 2003 Series

Tuesday, 17 December 2002 Type: Guaranteed growth bond Aim: Growth linked to the FTSE 100 index Minimum investment: Lump sum £5,000 Place of registration: Guernsey Investment split: 100% linked to the FTSE 100 Guarantee: Clients choice of between 85 – 110% of capital returned in full at end of five-year term regardless of movement of […]

Rates can fall as well as rise

Like many commentators, following the Chancellor&#39s pre-Budget statement, Lorna Bourke has immediately concluded that interest rates will now certainly rise. She helpfully suggests that clients should switch to a fixed or capped-rate mortgage as soon as possible, apparently even if it means suffering a penalty.Secondly, clients should defer their retirement or manage without income for […]

IMA welcomes reforms but wants action on IPAs

The IMA has welcomed the Government&#39s intention to simplify the regimes governing pensions tax but is calling for further measures to be taken on Individual Pension Accounts. Chief executive Richard Saunders says: “We need to look closely at the detail, but at first sight, removal of the complex limits on annual contributions to personal pensions […]

Out of context for 2002

•Venice, ah the scent of death – there&#39s nothing like a bit of death for us enhanced annuity boys.” – Britannic Retirement solutions head of communications Jim Boyd on a romantic weekend•”The person you need to speak to is at the vet with his wife. Sounds ominous.” – Barclaycard spokesman Ian Barber•”An IPA? What is […]

Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


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