View more on these topics

Consumers less likely to review pension status

Media coverage of pensions is putting people off saving for retirement rather getting them to look at retirement provision, according to research commissioned by Charcol.

Pollsters MarketMinder asked a representative sample of 2,009 adults how media coverage of pension issues had affected their actions.

Sixty per cent of consumers are unaware of the annuity open market option, with 93 per cent so unmoved by the pension crisis they are not reviewing their retirement savings.

A fifth of those questioned said they would consider providing for their retirement through means other than pensions, many saying they would like to avoid the stockmarket.

While Charcol welcomes recently announced financial services reforms, the IFA says consumer confusion will increase as changes are introduced over the next two years.

Financial services director Roderic Rennison says: “Faltering stockmarkets and loss of confidence in the financial sector are at the heart of the issue. Reform is on the Government&#39s agenda but it will be at least two years before these take place.

“Based on the best and worst annuity rates available, a pensioner purchasing an annuity with a fund of £100,000 could receive between £5,360 and £6,390 per annum – a 19 per cent difference. If all those scheduled to retire in the next two years fail to shop around, the cost of ignorance could be in excess of £32m.”

Recommended

Sarasin blends income sources

Sarasin has established the Sarasin CI income portfolio, a Guernsey-based unit trust that invests in a portfolio of bonds and equities.The fund aims to deliver an initial yield of between 6 and 8 per cent, but will also have scope for capital growth. The fund will initially invest 70 per cent in bonds, 20 per […]

Package bids to stop firms quitting

A package is being prepared by Misys with the aim of stopping firms quitting its networks in the two-year run-up to flotation of its IFA division in 2004.It is planning to offer IFAs share options at the time of the flotation, as well as measures to offer benefits that cover recruitment, retirement an retention. Misys […]

Birmingham Midshires – Guaranteed Five Year Trigger Account

Tuesday, July 23, 2002Type: Guaranteed equity bondAim: Growth linked to the FTSE 100 indexMinimum-maximum investment: £1,000-£500,000Term: Five yearsGuarantee: Capital returned in full at end of term regardless ofmovement in indexReturn: Up to 42% growthClosing date: September 30, 2002Commission: NoneTel: 01902 302832

Cazalet attacks Standard Life

Influential analyst Ned Cazalet has launched a scathing attack on Standard Life, saying its reserves are severely depleted and that it is pursuing a high-risk investment strategy.Speaking at a round table organised by F&C, Cazalet said: “Standard Life has lost £9bn out of its £10bn capital. Standard Life is taking riskier and riskier bets. Standard […]

Guide

Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment