Aegon says the introduction of Lord Turner’s NPSS proposals could see benefits from the state second pension almost halve for mid to high-earners.Its research reveals higher-earners could see S2P benefits cut by up to 50 a week. Turner wants S2P to be downgraded, removing the earnings’ link and just paying a flat-rate benefit. Aegon head of business regulation Steven Cameron says it is likely the Government would use National Insurance contributions to S2P to subsidise some areas of pensions. As an alternative, Aegon suggests putting NI contributions into funded personal accounts which could also help to ease the unfunded state pension burden. Cameron says: “Turner’s proposals will be increasingly redistributive for higher earners who could see their S2P benefits cut by up to 50. There has been silence on S2P as everyone has focused on Timms’ challenge for an alternative to the NPSS. This is a debate that must be had.” Tory Shadow Work and Pensions Secretary Phil Hammond has expressed support for Aegon’s stance, saying further debate is necessary on state pension reform.
Norwich Union and HSBC have entered the pension term assurance market. NU has launched life insurance with tax relief and mortgage life insurance with tax relief on level and decreasing terms. HSBC has set up life cover with tax relief and mortgage cover with tax relief.
Support service provider threesixty has launched a protection panel comprising Legal & General, Friends Provident, Scottish Provident, Scottish Equitable Protect, Standard Life and Scottish Widows. The panel will offer enhanced commission rates to advisers on term assurance, CI and MPPI products and will be a free service for threesixty clients. It will include a free […]
Only half of first-time buyers avoid paying stamp duty despite the threshold being more than doubled over the last two Budgets. The Council of Mortgage Lenders found that 50 per cent of first-time buyers and 80 per cent of all people moving pay stamp duty despite Chancellor Gordon Brown raising the threshold from 60,000 to […]
Norwich Union and HSBC are the latest companies to enter the pension term assurance market. NU has launched life insurance with tax relief and mortgage life insurance with tax relief on level and decreasing terms. HSBC has launched life cover with tax relief and mortgage cover with tax relief.
By Jamie Clark, Business Development Manager With only a few weeks to go before the new pension freedoms allow people to access their pension funds as and when they like, there are concerns that the consequences of making (or not making) the right decision could put pension savings at risk. Yes, this revolution is exciting; […]
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National advice firm Sandringham has made two new board appointments as it seals the hire of former James Hay director John Watson. Watson served as finance director for the platform and its parent IFG Group’s advice business Saunderson House until 2015, before taking over as chief operating officer for financial technology company Equiniti. Sandringham, a […]
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