View more on these topics

Labour election win could block cash for annuity plan

Pensioners who want to swap their annuities for cash or drawdown under the Coalition’s plan could find a Labour government blocking their plans, Money Marketing understands.

Chancellor George Osborne launched a consultation on creating a secondary annuity market as part of his March Budget, and claimed the reform would allow around five million people to benefit from the pension freedoms.

People taking advantage of the changes may be forced to seek financial advice first. The Government says there is a “strong case” for an advice step and hints the £30,000 threshold used for transfers out of defined benefit schemes could be extended.

The Liberal Democrats confirmed in their manifesto that it would “press ahead with plans to allow people more freedom in the use of their pension pots and to allow existing pensioners to sell their annuity”.

However, pensions experts branded the plans a “scorched earth” policy that could undermine the pensions system and warned people faced a “potential minefield” when trying to sell on their annuity to insurance companies.

Now a senior Labour source says the party is not committed to a backing the development of a second hand annuity market if it forms a government following May’s general election.

The source says: “Steve Webb conjured up this idea without doing any proper research first. At the moment, we haven’t been given enough details to say whether or not it could work.”

Recommended

Wonga
3

Wonga records pre-tax loss following £35m customer redress hit

Controversial payday lender Wonga has reported a pre-tax loss of £37.3m for 2014 after taking a £35m customer remediation hit following an intervention by the FCA. The firm’s full-year results for the 12 months to 31 December 2014, published today, reveal revenues plummeted 31 per cent year-on-year, from £314.7m to £217.2m, driven by a “significant […]

Jane Cuthbertson

Ten tips for being a successful networker

Networking is a crucial part of developing referrals and opening new doors. Indeed, many advisers we work with are building profitable businesses almost solely on referrals. Building a referral network is a great way to find new clients and prospects. However, contrary to popular belief, networking is not about trying to sell your services to […]

Shaun-Sandiford-700x450.jpg
1

Octopus to offer VCTs through Transact

Octopus Investments is to allow investors to buy and hold shares in its Venture Capital Trusts through adviser-facing platform Transact for the first time.  The launch of the service follows a change announced in the Finance Bill 2014 which allows investors to buy VCTs directly via a platform. Previously, investors could only transfer their holding to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. In the (hopefully extremely unlikely) event of Labour getting back into power next month, we’ll have a whole raft of considerably more damaging things to worry about than further tinkering with pensions, not least Ed Balls’ hand on the tiller of the economy.

Leave a comment