Providing generic financial advice to people on low to moderate incomes could save the Government 100m a year in welfare payments, claims the Resolution Foundation.It says the figure is based on modelling by Deloitte & Touche looking at the impact of providing low-level advice to the 15 million people who are on below average income but above state benefit levels. It says that within 10 years of delivering the advice, the Government’s bill for pension credit could be slashed by 100m a year, with more people engaged with saving rather than relying on a state safety net, rising to 800m a year later in the centuryResolution Foundation’s report, A National Dividend: The Economic Impact of Financial Advice, suggests the move could increase the personal wealth of today’s young people by an average 60,000 by the time they reach retirement. The report says an advice service would also help achieve policy objectives such as financial capability, reducing debt, tackling poverty and pension reform by underpinning the proposed NPSS. It claims the financial service industry would benefit from better engaged consumers stimulating demand, an increase in sales and lowering distribution costs associated with prospecting for new business in this area. The not-for-profit organisation is working on plans to provide generic advice thr- ough a national advice service as the Government prepares to launch a new 10-year strategy on financial capability this autumn. Resolution Foundation chairman Clive Cowdery says: “The Government stands to make early savings of 100m a year in the welfare budget from investing in financial advice, with a profound effect on individual lives. Developing this national financial advice resource should be at the heart of the Government’s forthcoming strategy on financial capability.”
Old Mutual has more than doubled life and pension sales in the firm’s first set of results since buying Skandia in February. Sales for the first half of this year hit 732m from 319m on an annual premium equivalent basi and profits have grown by 39 per cent to 885m from 638m in the first […]
For the past few years, a lot of fund managers have sought to emphasise their stock-picking prowess. Whereas previously they spoke proudly of the quality of their macroeconomic analysis or their thematic processes, more recently it has been about stocks and, in particular, the wide range of money-making opportunities that exist in mid-cap stocks, not just here in the UK but also in the US, Europe and Japan.
The FSA’s consultation period on the age 70 rule has now ended. Would you like to see the rule abolished or the age threshold raised to 80? Which option do you think the FSA is likely to take? Would you like the rule to be scrapped on all types of whole-of-life plans or only certain types?
The FSA is urging consumers that have bought motor insurance from Double Easy Brokers – trading as Eeasybrokers – to arrange new motor insurance immediately.Eeasybrokers is not authorised by the FSA and it was offering invalid motor insurance policies to the public. Consumers should contact the FSA’s helpline if they have queries as it is […]
Largely obscured by ‘noise’, the facts suggest that the price of oil will rise by the end of this year, according to Richard Hulf. To watch the video click here
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The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back. London-based Beaufort Securities has been investigated by both the FCA and US authorities. An indictment from the US Department of Justice alleges that […]
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