View more on these topics

&#39Use MP pension rise to aid state scheme&#39

One in five UK voters believes the improved pension deal that MPs passed for themselves in July is disgraceful and more than a quarter think that the extra cash should be used to boost the state pension, according to research conducted for stockbroker Comdirect.

The survey reveals that 21 per cent of people think the deal is unfair and 26 per cent believe the money should be spent on increasing the state pension.

Twenty-seven per cent say if the money is not spent on basic pensions, then the Treasury should use it to improve other public services.

Only 6 per cent were not concerned about the pension increase. People in their late 50s and late 70s were the strongest proponents of using the money to pay more through the basic state pension.

The deal was approved by MPs before they adjourned for their three-month summer holiday. It will raise their rate of pension from one-fiftieth of their £55,118 salary for each year of service to one-fortieth.

Comdirect compares this figure with most final-salary schemes, which it says are one-sixtieth or one-eightieth.

Chief executive John Glendinning says: “At a time when tumbling stockmarkets continue to damage pension funds and an estimated 75 per cent of FTSE 100 companies with final-salary pension schemes face a shortfall, the MPs&#39 new deal highlights the double standards of those in their ivory towers.”

Recommended

Newcastle Building Society – Guaranteed 5 Star Bond Deposit Account

Thursday, 5 September 2002 Type: Guaranteed equity bond Aim: Growth linked to the performance of the Credit Suisse bond fund US$, Fidelity European growth, Franklin Templeton mutual beacon, IFDC Japan dynamic and Merrill Lynch offshore sterling trust UK Minimum-maximum investment: £1,000-£500,000 Term: Five years Guarantee: Capital returned in full regardless of the performance of the […]

New Star Asset Management – New Star Japan Hedge Fund

Thursday, September 5, 2002Type: Hedge fundAim: Growth by investing in Japanese equitiesMinimum investment: Lump sum $150,000, yen 1.5mPlace of registration: BermudaInvestment split: 100% in Japanese equitiesIsa link: NoCharges: Annual 1.5%Commission: NoneTel: 020 7225 9200

Wind-ups can bring business for IFAs

The winding-up of finalsalary schemes and the shift from defined-benefit to defined-contribution schemes offers IFAs significant business opportunities, according to employee benefit specialist Jardine Lloyd Thompson. The company says the complexity of scheme termination presents IFAs with a clear opportunity to advise on employers&#39 responsibilities. It identifies how prompt actuarial and investment advice on the […]

Zurich to cut 4,500 jobs

Zurich Financial Services Group announced it is to cut 4,500 jobs as it reports its half year results. It says this is part of major strategic and operational initiatives to sharpen its strategic focus, by concentrating on core insurance markets in the US, UK and Europe, improve operational efficiency, strengthen its balance sheet and improve […]

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