View more on these topics

&#39Pivotal ages don&#39t swing decision now&#39

Contracting out on the basis of pivotal ages is no longer justified because rebates are so low, according to Scottish Equitable pensions development director Stewart Ritchie.

Ritchie told a packed audience at Money Marketing Live at London&#39s Olympia that cli-ents could still want to contract out on other grounds such as mistrust of the state meeting its pension promises. Advisers might recommend contracting out where the shape of benefits made it worthwhile such as men wanting to take benefits at 60 from a personal pension.

The actuarial profession&#39s submission to the Department for Work and Pensions Green Paper calls for an improvement in the level of contracted-out rebates to levels that make coming out a realistic option.

The actuaries told the DWP the current level of transfer values is so low that there is no basis for relying on pivotal ages to recommend transfers at all.

Ritchie said: “The message from the actuarial profession is &#39Please do not base decisions to take contracting-out rebates on pivotal ages&#39. If you do, you will be standing on very weak ground.”

Recommended

Talkback

“No, I do not think financial advisers or IFAs are pers-ecuted any more than other small business people but we need to speak more strongly with one voice and I see this happening through Aifa and Sofa. They are starting to have more clout but we are living in a American-ised blame culture.”Graham Shields, ABS […]

Lifesearch says clients feel betrayed and will shun Pru

The overwhelming majority of clients of national broker Lifesearch say they will never buy another Prudential product after the recent debacle over its protection business.The firm says 93 per cent of clients affected by the Pru move last month to raise premiums and remove guarantees on pipeline critical-illness business say they will never use the […]

Gartmore cuts US fund charge

Gartmore is aiming to attract investors to the opportu-nities presented by a potential comeback in the US economy by offering a 2 per cent discount on its initial charge of 5 per cent for its US fund.The fund firm is also offering a discount on its headstart scheme for children. Until August 29, lump sum […]

Cash has dash

Cash plans are one of the fastest-growing healthcare products in the marketplace but IFAs are not utilising them as effectively as they could.Although cash plans are predominantly sold direct to the public through call centres and the internet, product providers assert that they are a useful tool for supplying clients with a comprehensive protection package.Most […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment