Leading Labour backbencher John Denham says the Government must work with the financial industry to create an equity-release programme for people excluded from the product.Home affairs committee chairman Denham says there is major confusion over equity release and people living in deprived areas and young or middle-aged homeowners are excluded from the benefits. He says the Government should work with the industry to create a home-saver product, essentially an equity-release plan, with private or charity partners, to boost trust, allow for economies of scale and offload some risk through securitisation. Former pensions minister Denham was speaking at a Social Market Foundation event to launch a report from the thinktank looking at how more people can take advantage of equity release. He says: “In recent years, the welfare system has given significant help to the very poorest households. But middle-income families are still in much the same position as they were left by the Tories. “The Government can help meet their needs by working with the financial services industry on low-cost flexible products to unlock housing capital.” SMF director Ann Rossiter says: “Finding a way for homeowners to access the wealth is essential if we are to help people cope with life’s uncertainties and avoid a generation of impoverished pensioners.” Norwich Union director of sales and marketing Daren Carter says: “The idea of a Government-backed equity-release scheme is one to explore in more detail.”
Skandia is to change the way it reports its critical-illness claims statistics to bring it in line with the rest of the industry. It was attacked earlier this year for claiming to have a zero per cent unpaid claims for non-disclosure record. Now it admits that the way it collated claim data was flawed and […]
The Chartered Insurance Institute elected its new line up of officers for 2006-2007 including a new president to replace Peter Hales at its annual general meeting in London earlier this week.
How can we convince consumers that paying into a pension is worthwhile?
Abbey has launched a new Guaranteed Income Bond offering both protection of capital at maturity and income over the next four years.
There are now more active savers in UK DC pension schemes than in DB pension schemes, according to recent stats from the Pensions Policy Institute. It also estimate that in just 15 years there could be as many as 17 million members enrolled in DC workplace pension schemes*. Based on current experience it is expected […]
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The FCA has reiterated its warnings that advisers outsourcing defined benefit transfer advice to firms with relevant qualifications cannot divorce themselves from responsibility for the eventual recommendation. While existing FCA rules require additional qualifications to advise on DB transfers, and the FCA has written to all firms who have DB transfer permissions as part of […]
The Liberal Democrats have branded the government’s decision to delay a pot follows member pension system “incompetent”. The Liberal Democrat spokesman for work and pensions Stephen Lloyd MP says the move by pensions minister Guy Opperman shows how “rudderless” the current government is on pensions policy. Last October Opperman suggested the pot follows member initiative […]
Putting the right people off transferring at the outset will be hugely valuable to the industry but there are issues to address A combination of pension freedoms and the economic circumstances giving rise to historically high transfer values has created a perfect storm in terms of demand for defined benefit transfer advice. Sadly, it has […]