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Concern at admin chaos over flood of transfers

The ABI is negotiating with the Inland Revenue to halt the predicted flood of transfers to stakehol-der from pension top-up plans after the Government&#39s acceptance of par-tial concurrency.

The ABI is worried this scenario will create an admin nightmare for life offices.

It fears the tax-free cash benefit available from a stakeholder held concurrently with an occupational pension will lead to a rush of savers abandoning their free-standing additional voluntary contributions and additional voluntary contributions.

When the Government announced its plans to allow individuals to contribute to an occupational pension alongside a stakeholder this summer, it prompted predictions of the demise of the pension top-up market.

Many thought savers would be lured by the 25 per cent tax-free lump sum under stakeholder, a benefit not offered by either FSAVCs or AVCs.

ABI spokesman Malcolm Tarling says: “The disparity between the amount of tax-free cash under a stakeholder and that under AVCs and FSAVC has led us to look for scope to equalise the benefits.

“In theory, there could be a lot of people rushing to transfer which would cause an admin nightmare for life offices.”


Investec get wireless

Investec Asset Management has introduced the Wireless World Fund, a Dublin domiciled UCITS.Aimed at experienced investors who want long term growth from access to technology, the fund will invest in between 30 and 40 companies that are investing in mobile access to the web via mobile phones and other devices.These will include companies such as […]

ScotEq and Widows fear IPAs will add complexity

Pension providers want the Government to put individual pension accounts on hold after the launch of stakeholder to prevent consumer confusion.The IPA is due to start alongside stakeholder In April next year and is intended to fit with stakeholder and other pension contracts.In its submission to the Government consultation, Scottish Equitable has voiced fears that […]

Surviving Stakeholder

For many IFAs, giving good advice about long-term savings and investments has meant striking a balance between security in old age and liquidity of savings before and after retirement. In taxation terms, this has involved optimising the use of personal pensions on the one hand and Peps/Isas on the other.Once the early years&#39 struggle to […]

LeggMason Investors American Assets

LeggMason Investors Asset Managers, formerly known as Johnson Fry, has brought in a new investment trust, called LeggMason investors American assets.The product, which will be listed on both the London and Channel Islands stock exchanges, is aimed at investors looking for both long-term growth and high income.The investment trust will focus primarily on America, with […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]


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