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ABI is not backing compulsion for pensions

The headline and first para-graph of the article, ABI disappointment as Labour seems to rule out compulsion (Money Marketing, April 14), gives the misleading impression that the Association of British Insurers has undergone some sort of Damascene conversion and is now in favour of compulsion for individual pension savings.

As we have stated on many occasions, including in our submissions to the Pensions Commission, we believe that other measures, such as incentivising workplace saving, are much more effective tools to encourage people to save.

The point that we were making was a much more general one, which is borne out by the statement quoted in the article that early legislation is necessary, following the Pensions Commission’s recommendations, in order to address the widening savings gap.

The issue of pension reform is too important to be kicked into the long grass yet again.

The ABI will continue to press the Government for timely legislation while continuing to oppose compulsory saving for individuals.

Chris Kenny

Director of life and pensions,

Association of British Insurers

London EC2


Rat race

Reform of the tax system for trusts has been under consideration since the pre-Budget report of 2003. Progress is slow but the good news is that the Government continues to work with various representative bodies to secure consensus on the best way to simplify trust taxation still further to help people manage their affairs while ensuring that trusts are not used to achieve an unfair tax advantage.

‘Advisers are trading without PI’

The FSA is failing to crack down on firms operating without professional indemnity insurance, leading to concerns that IFAs could slip through the net, says Collegiate managing director Tony Howe.


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