View more on these topics

&#39Lifetime limit may discriminate against women&#39

Replacing the annual pension contribution limit with a single lifetime

limit could discriminate against women as they would get lower annuity

income than men because of their longer life expectancy, experts claim.

Pension experts are warning that a sex discrimination challenge is just one

problem facing the £1.4m lifetime contribution limit proposed in the

Inland Revenue&#39s pension taxation review announced alongside the Department

for Work and Pensions Green Paper last December.

The industry has given a cautious welcome to the Rev-enue&#39s proposals but

prov-iders and advisers are also concerned that the limit rel-ates to the

value of the fund at retirement and not the contributions into the fund,

forcing individuals to correctly predict investment performance over

decades or face a double tax hit of a third of the excess fund as well as

income tax on the excess.

Standard Life senior technical manager John Lawson says: “Growth of 4.5 per

cent above inflation would see a 40-year-old&#39s fund of £500,000 grow

to £1.2m in 20 years. People already at that level could see

themselves overshooting the limit if they carry on paying as they are now.”

Scottish Life head of pensions strategy Steve Bee says: “The fact that men

would be able to achieve a higher inc-ome in retirement could leave this

open to challenge. But this is part of a broader picture which sees the

switch from final-salary schemes to money-purchase schemes worsening the

position of women.”

Intelligent Pensions director Steve Patterson says: “The limit means that

some people will have to stop paying into their pension by virtue of good

investment performance.”


Lighthouse&#39s Hamson buys founding firms as he steps down

Lighthouse joint managing director Nick Hamson has stepped down from theboard and bought out the group&#39s two only wholly-owned IFAs and foundingfirms.Hamson, with fellow board member Matthew Goldsmith, owned the City and Kentfirms when Lighthouse was first established and Hamson has continued to runthe firms while performing his duties as joint MD of the group. […]

Put your views on pension plans

The Pensions Green Paper proposes the most radical shake-up to tax andother rules governing pensions for many years and will affect the adviceyou should be giving immediately.On February 6, Taxbriefs is holding a Sofa-sponsored conference in Londonon the ramifications of the review.Speakers will include Secretary of State for Work and Pensions Andrew Smithand the leader […]

FSA forced to retreat on past performance

The FSA has been forced to reverse its opposition to the use of pastperformance in promotional literature by a European Union directivecompelling fund managers to include historical performance of their fundsin prospectuses from next February.Despite its long-running opposition to the importance of past performance,the regulator will have to include the changes to unit trust and […]

Wentworth Rose opens new office

Wentworth Rose is to open a new office in Chester to offer advice to the clients of HS Adminstration Services, a fellow Aegon company. HS administers final salary and money purchase scheme for blue-chip companies, and clients will now have access to the expertise of Wentworth Rose.

How to balance bottom-up with top-down research in constructing multi-asset credit portfolios

In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]


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