View more on these topics

Minister rules out &#39reform for rich&#39

Pensions minister Ian McCartney has ruled out annuity reform because he believes it would benefit only the very wealthy.

At a fringe meeting at the annual TUC conference in Brighton this week, he said he had not seen any evidence that relaxing annuity rules would benefit the average pensioner.

Answering a question from the floor, McCartney said: “Some of the arguments being pressed on the Government are valuable only to the very wealthy. I would resist such a change. I have got nothing on my table that suggests to me we should be damaging the concept of providing a lifetime income for people.”

Scottish Life head of communications Alasdair Buchanan says: “The effect on many individuals of the current regime is that many are put off saving for retirement through pensions. The Government might look at opportunities to remove the barriers.”

Wentworth Rose managing director Philip Rose says: “Would any of the delegates at the TUC see themselves as filthy rich fat cats? Yet someone on an occupational NHS scheme might be retiring on a pot of up to £300,000.”

Retirement Income Reform Campaign chairman Dr Oonagh McDonald says: “Unfortunately, there is a failure to understand how annuities work. The long-lived, who are usually the wealthy, benefit the most because they are subsidised by those dying early, usually the less well off.”

The TUC is expected to pass an amendment calling for compulsory employer contributions into pension schemes. Pension committee chairman Tony Young said compulsion is necessary if stakeholder is to succeed.

Recommended

Inside Edge

Over the last few weeks, I have been meeting with our major life company partners to review business achievements and to discuss matters for the next year with our commercial director and head of research. These have been open and frank business meetings and it is good to see we all have matching weaknesses and […]

Once again, who can beat WP?

Brian Newbould&#39s offering entitled, Rough on the smoothing (Money Marketing, August 30) is infantile. I would once again ask the question “Who can beat the returns on with-profits?” Certainly, regular-premium contracts have no long-term equal. I have been around 30 year, I have sold policies and I have seen them mature. I have taken the […]

PMI costs rising

The cost of private medical insurance is increasing as more individuals are claiming on their policies, with individual premiums increasing by 5 per cent a year, a survey shows.And the PMI market may be approaching saturation as the number of individuals with cover has only risen by 3 per cent to 6.2m in 2000 from […]

&#3986% missing out on net opportunities&#39

Financial services companies are not making the most of the internet, according to research from the Institute of Financial Services. At the Unisys global financial industry conference in Nice last week, the IFS revealed that 86 per cent of companies questioned in a survey had not made the most of online opportunities. It pointed particularly […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]

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