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Investing retirement money in shares is a dangerous game, says Lincoln

More than 1.8 million over-55s consider shares as an alternative to pensions, according to research by Lincoln Financial Group.

The group says consumers who put money directly into shares and unit trusts, or invest via ISAs and PEPs instead of saving into a recognised pension scheme are risking their retirement income.

Lincoln’s research shows 26 per cent of those aged-55 plus who invest in shares regard their investments as an alternative to their pension and 21 per cent of those are considering increasing the money they have invested in the stock market.

Lincoln Financial Group head of product and marketing Simon O’Connor says some people are playing a very dangerous game.

He says: “Stock market volatility this year has been pronounced and the recent past has seen four years in which the FTSE-100 has ended the year down. In fact the FTSE has still not returned to its high at the end of 1999.

“Long-term investment is the key to successful retirement income planning and pensions are the ideal vehicle to deliver the retirement income aspirations of savers. The tax advantages alone make pension saving demonstrably superior to direct stock market investment.”


Precipice alert over new plans

Product providers and advisers have urged caution over a new generation of precipice bonds, warning that investors must fully understand that capital is at risk to ensure the disasters of the past are not repeated.A spate of new launches offer higher headline rate returns in the market but are not 100 per cent capital-protected.Blue Sky […]

Future of DB Mortgages unclear as Dudgeon axed

Deutsche Bank has refused to comment on the long-term future of DB Mortgages after it confirmed that managing director Bill Dudgeon has been made redundant.A spokeswoman for the bank would not say whether fellow directors Mark Bergin, David Parry and Paul Graham, who joined DB Mortgages with Dudgeon from The Mortgage Business in 2005, are […]

TSC report attacks FSA for failing to supervise Northern Rock

The Treasury Select Committee’s report on the Northern Rock fiasco has attacked the FSA for failing in its duty as regulator.It has also called for a new role at the Bank of England to be established which would look after issues of liquidity.The new post of “Deputy Governor of the Bank of England and Head […]

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England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.


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