View more on these topics

Feeling conned

There seem to have become a popular facility provided by some life companies, presumably to give the impression that they have established a dedicated support division for the members of certain networks.

In the case of Legal & General, though, this is not quite the case. We recently discovered that, in fact, L&G has just one team that deals with enquiries from all members of all the networks.

Our phone numbers are programmed into their system so that when we call, the name of our network is displayed on some sort of screen which tells the person taking the call to announce themselves as either the Burns Anderson support team or the Interdependence support team or whatever. But in reality, it is just one department.

Now, if they announced themselves as the network support team (for all networks) or something equally generic, I would not mind. But what they have done is established one thing but dressed it up as another and that, to my mind, is a con.

On a different note, I recently visited a client who is a member of her employer’s final-salary pension scheme which she will soon be leaving when she leaves that particular employer. I advised her that she should be granted a preserved entitlement in the scheme which she will have the option either to leave where it is or transfer to another occupational scheme or transfer to a personal pension or a buyout bond.

I also advised her that transfers out of final-salary pension schemes are a complex area on which all reports have to be referred to a specialist division within our network, which charge a nominal fee for the service.

She was OK with this but had clearly made up her mind about transferring out as she has no faith at all in the security of her employer’s pension scheme, even though this has recently been subsumed into the scheme of a much bigger company.

In fact, even though the scheme is 60ths-based, hardly any of the younger employees are bothering to join as they too have no faith at all in pensions in general and in their employer’s scheme in particular.

Julian Stevens,

WDS IFAs,

Bristol

Recommended

Bank of England stats indicate recovery in housing market activity

Figures released by the Bank of England show the number of new mortgage approvals for home purchases were a seasonally adjusted 107,000 in September, up less than1 per cent from 106,000 in August. Compared to last year, mortgage approvals are now 24.4 per cent higher, contrasted with the fall of 42 per cent last November. […]

Strife on Mars

Women are from Venus, men from Mars – discuss. No matter how you start this conversation, one of you will end up grumpy but one area where there will be no disagree-ment is women and pensions.

HBoS Financial Services appoints new marketing and distribution director

HBoS Financial Services has appointed Paul McNamara as marketing and distribution director.He will be reporting to managing director John Spellman.McNamara has over 20 years experience in financial services. He joins HBoS from Axa UK where he was group strategy director and he previously held senior roles with McKinsey & Company and the Bank of Ireland […]

CML says regulation adding up to 1,000 to buying costs

Regulation can add up to 1,000 to the cost of buying a house and is undermining Government plans to extend home ownership, says the Council of Mortgage Lenders. According to the CML’s pre-Budget submission, M-Day is just one of several regulatory initiatives adding to the burden on lenders and their customers, leading to the cost […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment