View more on these topics

Aegon wants pension holiday to repay debt

Aegon is calling on the Government to allow people to divert employee and employer pension contributions to pay down debt for a specific period of time.

In its response to the Government’s call for evidence on early access to pensions, Aegon is pitching a “debt to savings” proposal.

It suggests that people in employment could take a pension payment holiday and request that their contributions from their salary, minus tax relief, and their employer’s contributions are diverted into repaying a consolidated loan for a fixed period of time.

On entering the arrangement, the employee would undertake a contractual obligation to pay a similar amount into a pension or other retirement savings vehicle once the debt is cleared for at least the same duration.

Aegon UK head of regula- tory strategy Steven Cameron says the proposal could reduce the opt-out rates for automatic enrolment.

Cameron says: “The proposal gives people a way of paying off their debts. It gets them into the habit of deferring consumption or doing without a part of their salary and once that debt is repaid, it is much more likely that they will automatically roll over into saving for retirement.”

The Retirement Adviser director Nick Flynn says: “I think that this is too complicated for an ordinary employee who has not got a pension currently.

“Nest is going to be a huge education piece and to take that a step further and try to work this in with debt consolidation could be a step too far.”

Recommended

3

FSA fines DB Mortgages £840,000

The FSA has fined DB Mortgages, part of the Deutsche Bank Group, £840,000 for irresponsible lending practices and unfair treatment of customers in arrears. The regulator also secured redress of approximately £1.5m for customers of DB Mortgages. This is the first time the FSA has taken enforcement action against a firm for irresponsible mortgage lending. […]

Standard says auto-enrol into pensions and Isas

The Government should allow employees to be auto-enrolled into both pensions and Isas as part of a radical shake-up of the savings regime, according to Standard Life. In its response to the Treasury’s call for evidence on early access to pensions, Standard says employees should be able to pay 4 per cent of salary into […]

Reorganise to confuse

Having just received my letter from Hector Sants about the “regulatory transition”, I am again reminded of a wonderful old quote from Caius Peronius in AD66: “We trained very hard but it seemed that every time we were beginning to form up into teams, we would be reorganised. I was to learn later in life […]

Ian Thomas latest to leave Axa Wealth

Axa Wealth head of customer experience Ian Thomas is leaving Axa alongside around 20 staff who have had their roles made redundant as part of a company restructure. The restructure, announced yesterday, saw Axa Elevate managing director Martin Jennings step down from his role. Axa says around 20 roles have been affected by the restructure […]

Artemis Global Income: Making sense of global markets

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]

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