View more on these topics

&#39Public want annuity reform and a gradual retirement&#39

The Government should introduce gradual retirement, equal-ised tax incentives and moneyback annuities as they all have strong public support, says Downing Street pension adviser Dr Ros Altmann.

But the public would reject using a flexible retirement policy as a cover for raising the state pension age to 70, according to extensive research by pollster YouGov conducted for Altmann, with 63 per cent rejecting moving the retirement age back five years even if it was sweetened with a big increase in the amount of the pension.

Altmann says the survey findings support calls for changing retirement from a cliff-edge event to a long-term process through allowing part-time workers to take part of their pension, introducing age discrimination legislation and improving job opportunities for older people.

The survey, which questioned more than 6,000 respondents, shows that only 4 per cent support the present tax regime that gives bigger tax breaks to higher-rate taxpayers, with 57 per cent in support of level relief across the board and 29 per cent wanting higher relief for lower-earners.

A massive 92 per cent want the tax-free lump sum retained while the introduction of moneyback annuities was supported by 91 per cent, with 77 per cent saying it would make them save more.

Altmann says: “The points that the Green Paper should take on board from this research are that people want retirement to be a gradual process and not a cliff-edge process. They want annuity reform because they do not understand annuities, yet once they buy one they are stuck with it and they support incentivisation.”

Scottish Equitable pensions development manager Margaret Craig says: “We have detected market enthusiasm among advisers for moneyback annuities.”


Base-rate trackers from Mortgage Next

Broker network Mortgage Next has added a new range of base-rate tracker loans funded by Halifax to its selection of products.The range has mortgages for first-time buyers, other homebuyers and borrowers remortgaging, all tracked until November 30, 2005.First-time buyers qualify for £250 cashback and a refund of up to £435 when using a Halifax valuation […]

Fund firms get freedom mix

Unit trust and Oeic managers will see the majority of new funds launched classed as mixed funds, allowing them greater freedom in investing under new FSA rules on classification of asset classes.Most new funds after November 1 will be classified as mixed funds and will be allowed to hold a greater mix of assets including […]

2000 AD EIS brings comic to life

2000 AD Films is an enterprise investment scheme that aims to translate characters from the sci-fi comic 2000 AD to the cinema screen. This EIS aims to raise between £250,000 and £2.5m to help finance a film which will follow in the footsteps of the 1995 production Judge Dredd which starred Sylvester Stallone. The company […]

C-share issue for Downing VCT

Tax shelter specialist Downing Corporate Finance has launched a £10m “C” Share top issue for the Pennine Aim VCT. The Trust is managed by Rathbone Investment Management and was the first Aim VCT to be launched in 1996. To date it has returned 55 pence tax-free to its shareholders and Downing says it has the […]

What are the key changes to transform pensions?

By Fiona Tait, pensions specialist In her final article for Royal London, Fiona Tait reviews key changes she believes have transformed, or will transform, pensions. In my 12 years with Royal London I have been paid to review, study and explain the numerous changes to pension legislation which have transformed our industry in that time. This is […]


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