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Flight hits at Lisa despite advocating US 401k plans

Howard Flight MP has slammed Government plans for the Lifelong Individual Savings Account despite his avowed support for similar US 401k pension plans.

Flight, the joint chairman of Investec Guinness Flight, used last week&#39s Welfare Reform and Pensions bill debate to hit out at the missed opportunity for a &#34rationalisation and reform of pensions&#34.

A key concern is that the Lisa does not provide a straight forward income drawdown alternative to an annuity, something that US plans allow.

He told the Commons: &#34The question of annuities has been completely ignored. The route down which we are going will vastly increase money purchase schemes. There is an overwhelming argument for scrapping the compulsion to buy an annuity at 75 and reforming the drawdown rules.&#34

Flight also hit out at the lack of detail on how Lisa will &#34plug in&#34 to other forms of pensions and contrasted the confusion of &#34two extra complications&#34 with the simplicity of the US.


Canada Life cuts premiums for term assurance products

Canada Life has cut its term rates by up to 21 per cent with effect from next March.The larger rate cuts are focused on the larger terms assured.A female smoker aged 40 will now pay 17.3 per cent less at £58.50 per month for a term of 25 years.A non-smoking smoking male aged 45 next […]

Chelsea launches new one-year bond

Chelsea Building Society is launching a new one-year, fixed-rate bond, paying a gross rate of interest of 5.25 per cent fixed until 1 May 2000.The bond will be a limited issue with a minimum investment of £5000 and the maximum is £500,000 provided the whole investment does not exceed £1,000,000.

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]


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