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Demographic dangers

Saga director general Ros Altmann says more must be done to warn some demographics they may be better off not saving into a pension.

At a conference fringe event, she said: “I am worried about people in their 50s, low-paid, maybe renters, who will be the first group of people to retire under this auto-enrolment system, who will have paid a 1.8 per cent up-front charge and who may find their pension savings have delivered them very little.

“We need to make sure we have proper risk warnings in place. I do not see enough talk about who is going to warn those people who should not put money into a pension scheme because it is not suitable for them. We are kind of relying on them knowing it themselves and I am not sure that is the best way forward.”

She said a product needs to be developed which will not be seen as “a locked box” to attract younger people to long-term saving. She said: “Is it possible for the Government to consider creating a vehicle which we do not call a pension where the 4 per cent from the employer and tax relief is locked in but you can have access to the 4 cent you put in?”



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Falling gilt yields are squeezing the income of thousands of retirees who are taking income directly from their pension funds, says Hornbuckle Mitchell. The 15-year gilt index yield used to calculate the maximum that can be taken under capped drawdown has plummeted and was at 2.98 per cent last Friday. This will be rounded down […]

Steve Webb positive on save more tomorrow pledge

Pensions minister Steve Webb says the Government should look at strategies to increase pension contribution levels, such as Save More Tomorrow, once the current auto-enrolment reforms have bedded in. At a fringe event at the LibDem conference in Birmingham this week, Webb said the Government would be looking at ways of ensuring people do not […]


Lender tip-off led to £250k fine for broker

The FSA has banned a London mortgage broker and fined him £250,000 for repeated mortgage fraud and deliberately misleading the regulator. The penalty is the second-biggest fine imposed on a mortgage intermediary. Selvavinayakam Vigneswaran was the sole director of Futture Finance Limited, a mortgage brokerage based in Kingsbury, North-west London.Authorised in October 2004, Vigneswaran was […]


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