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Lait suggests relaxing of rules on annuity purchase could revive LTC market

A Conservative Government could spell a boom for long-term care insurers as the party pledges to scrap the restriction forcing pensioners to buy an annuity by age 75.

Tory pension spokeswoman Jacquie Lait says if people have more control over their pension pot, they will not be forced to sell their house to pay for LTC costs. She believes people will be more likely to invest in products such as LTC cover.

But Lait has challenged the LTC market to design products that are cheaper and appeal to a wider audience.

She says: “Everybody knows annuities at the moment are not good value for money. It could almost be said they are being missold. We will do away with the requirement that everybody has to purchase an annuity with their pension pot by the age of 75 and one of the positive result of this will be people have a much wider opportunity to meet the costs of long-term care without having to sell their home.”

PPP Lifetime Care LTC marketing manager Paul Bennett says: “It is encouraging the Conservatives are seeing the need for people to insure but it has got to be combined with people understanding the need for protection. Whatever the Gov-ernment of the day can do to encourage, that is a good thing.”


Principality – Switch and Save

Friday, 13th October 2000.Type: Five-year stepped discounted rate for remortgages only.Discounted term: Until December 31, 2005.Discount: Year one and two &#45 2 per cent, year three, four and five &#45 1 per cent.Payable rate: Year one and two &#45 5.49 per cent, year three, four and five &#45 6.49 per cent.Minimum loan: £5,000.Maximum loan: Up […]

Flight calls for axing of stamp duty on shares

Conservative Treasury spokesman Howard Flight is renewing his call on the Government to abolish stamp duty on share dealing.Flight claims the tax is deeply unpopular with the Opposition and leading City figures, who believe companies could be forced to list on foreign stockmarkets to avoid the charge.But Flight concedes it is unlikely the Government will […]

Waiting for the rally to take flight

Every investor wants to know when markets are going to rally. Until now, analysts have tended to fall back on the “It&#39ll be all right in the fourth quarter” response. But sentiment has, if anything, worsened in recent weeks.The challenge for international portfolio managers is to make the most of the opportunities that do exist. […]

ScotEq under fireafter client is left without life cover

This week, Money Marketing brings you a double billing of Bungle Busters, with both Scottish Equitable and Halifax accused of administrative blunders.Scottish Equitable is under the spotlight after an IFA contacted Bungle Busters following what he claims was a catalogue of errors by the life office.Adviser Michael Both, of London-based Michael Philips, says ScotEq bungled […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


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