View more on these topics

Govt attacked over U-turn on public-sector pensions

The Government’s U-turn on public-sector pensions will make the job of selling reform in the private sector much harder, warns Aegon head of corporate affairs Francis McGee.

McGee says last week’s agreement between the Government and public-sector unions – which allows existing workers to continue to retire at 60 while the pension age for new entrants is increased to 65 – means the difficult decisions ahead will be tougher for private-sector employers and employees to stomach.

McGee says the timing of the announcement ahead of the Turner report is not helpful, especially as Adair Turner has already indicated that increases in the retirement age are high on the agenda.

He says this view has also been acknowledged by Work and Pension Secretary David Blunkett, which sits uneasily with last week’s deal.

McGee also argues that future reforms will only be successful if the pension industry benefits as there is a strong alignment between the interests of the industry and the public. He believes that introducing a version of the Swedish pension model – where life offices have a reduced role because contributions are collected by central government – would fail for this reason.

McGee says: “It is going to be hard for the Government to sell a package including later retirement and more obligations on the private sector after this announcement.”

Hargreaves Lansdown head of pensions research Tom McPhail says: “This move from the Government is completely spineless and indefensible. It is a huge step in the wrong direction and has made the forthcoming negotiations on private-sector pensions post-Turner that much harder as these employees watch the public sector’s Rolls-Royce pensions go by.”


Leitch teams up with Zurich allies

Ex-Zurich chief executive Sandy Leitch has teamed up with his former Zurich allies to launch a new 30m multi-tie proposition in the new year. Lord Leitch’s comeback venture, revealed in Money Marketing two weeks ago, aims to capture 1,000 advisers in the next four to five years and has secured 30m funding from backers, including […]

An enviable position

Alison Turner Holmes – Protection marketing manager, SkandiaSkandia pledges its support to the campaign. We use only fully FSA-regulated brokers to promote and recommend the quality critical-illness and life policies we provide. Fully regulated brokers are in an enviable position to give advice on a client’s whole financial position rather than isolating a particular need. […]

‘Only way to ensure money was passed to their partners’

Ivan Massow says he advised free-standing AVCs to gay clients in the late 1980s and early 1990s because it was the only way to ensure money was passed to their partners. He says FSAVCs had to be used as there was a risk that pension trustees would not pay out AVCs to gay partners and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm