View more on these topics

Figures confirm stakeholder debt fears

Up to a third of the Government&#39s stakeholder target group may be too heavily in debt to realistically afford a pension, according to figures from the DSS.


Pensions minister Jeff Rooker has released figures from the British Household Panel Survey in response to a Parliamentary question from Lib Dem social security spokesman Steve Webb.


The figures confirm the pension&#39s industry fears about the lack of scope for advice in the product, reinforced by their own focus group research showing stakeholder pensions may be unsuitable for low earners.


The figures, from 1996, cover those without a pension earning £9,000 to £21,500 in today&#39s money allowing for inflation. It shows over a third of this target group have more than £500 of non-mortgage debt. Nearly a quarter of these have more than £1,500 and ten per cent have debts more than £4,000.


Webb says: “Roughly a quarter of them owe more than month&#39s salary so clearly they need to think long and hard about putting money into a pension when they are paying high interest rates and charges.”


Axa Sun Life marketing manager Steve Muir says: “There is a danger that people may spend an inappropriate amount on a product that they can&#39t afford long term.”

Recommended

Fund managers cause e-commerce gap

The fund management industry is dragging down the financial services sector when it comes to e-commerce, according to two financial consultancy reports.Financial and IT consultancy CWB interviewed 103 fund managers in the UK, Europe and the US and found nearly half of financial houses do not operate e-commerce.And a PricewaterhouseCoopers report revealed although fund managers […]

Portman announce profits boost

Perennial carpetbagger&#39s target Portman Building Society has reported a ten per cent boost for its 1999 profits.The figures have allowed Portman to defend its decision to serve one month&#39s notice on 500 carpetbaggers who chased demutualisation windfalls earlier this year.Pre-tax profits for 1999 were up 10 per cent to £54.5m, with mortgage lending soaring 24 […]

Investment bank rise on tech-stocks

Investment bank Close Brothers saw its first-half profit boosted by the surge in technology and smaller company stocks.Close said profits for the months to January 31 before tax and other costs would be more than double the same period last year, expecting to earn in excess of £72.5m compared with £33.2m in the previous year.Close […]

NAPF to provide internet voting

The National Association of Pension Funds has joined forces with electronic voting company E-vote to provide more information on the conduct and invesmtent policy of institutional shareholders. The deal, for an undisclosed sum, will be signed later on this month and pre-empts Government plans to introduce compulsory voting on r esolutions by shareholders. The move […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment