View more on these topics

Life Trust income plan is long bet, claims McPhail

Hargreaves Lansdown head of pensions research Tom McPhail has branded Life Trust’s new longevity income plan a “gambler’s investment” as it does not return value unless investors live until their mid-90s.

The plan is a lump-sum investment designed to provide an individual with a rising income the longer they live but McPhail calls it a “high stakes” product and says there is only a small window of payback.

McPhail says: “You will not really start getting value for money until your mid-90s.

“If you want predictable and simplistic, you can get it elsewhere at a better price. I do not think it is a bad product but it is pretty niche. It is only going to be sold as a marginal long-stop alongside other solutions.”

Life Trust chief executive officer Andy Briscoe says: “To say it is a gambler’s product is a little judgemental. It is no more a gambler’s product than taking out a pension or insuring your home.

“If you do not live to a ripe old age, the money still goes back to your estate. It is a complementary product. You should still have a pension and other investments but this is a new tool to use alongside your other investments.”

Recommended

Federal express

Turmoil in the markets, the Fed catching us all out, Mervyn King warning of tough times ahead – not to mention the annual Davos Fest – it felt as though a whole quarter had been crammed into a single week.

The simple life

Planning for the consequences of death makes it easier to deal with the division and transfer of assets among heirs. Financial advisers should be aware of some simple steps that their clients can take.

ScotLife adds 16 core funds

Scottish Life has added four investment partners and 16 funds to its core range.The new partners are Allianz Global Investors, BlackRock, HSBC and Newton, which join fund companies including Artemis, Baillie Gifford and Invesco Perpetual.The move brings the total fund choice in the core range to 82. Policyholders will have access to nine new actively […]

Tax avoidance (the fight goes on)

In recent times, we have witnessed high-profile celebrities and sports stars make the headlines for potential tax liabilities on ‘failed’ tax avoidance schemes. We are now used to reading about these individuals, but what about those who advise on such schemes? Read more

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com