The National Association of Pension Funds has attacked both the industry and pension commission’s models for personal accounts and warned the Government that the scheme could severely hit existing pensions if it is designed poorly.In its submission on the Pensions White Paper, the NAPF says both models fail to achieve the best solution with regard to simplicity, choice and competition. It says if it was forced to choose between the two options, it would support the Turner-inspired National Pension Savings Scheme as long as it includes effective governance, maintains strictly targeted intervention, limits damage to existing pensions and allows a diverse market of workplace pensions to thrive. The NAPF supports the framework for reform that is set out in the Pensions White Paper but is concerned that a badly designed scheme could damage current savings levels. To guard against this, the NAPF has published a five-point plan to reduce the risk of levelling down. It proposes a good workplace pension quality mark for employers offering schemes above the personal accounts minimum and meeting certain criteria. It also calls for financial incentives for employers contributing at least 5 per cent, ringfencing personal accounts from existing provision by prohibiting transferring in and out, a “suitable alternative scheme test” and transitional measures to help employers adjust to the added costs of auto-enrolment. NAPF chief executive designate Joanne Segars says: “We cannot sit by and see good quality schemes, in which millions of hard-working Britons are saving, levelling down in favour of personal accounts.”
In my last few articles, I have been examining and discussing a number of issues which affect retirement planning decisions, or rather should affect them if clients are aware of the principles involved.
Conference season is approaching for the political parties, as it is for the professional bodies.
Vertex is understood to be in acquisition talks with several companies including mortgage sourcing system Trigold.The mortgage sourcing system, thought to be worth around £20m, has attracted interest from Vertex and Capita. Both firms are seeking to fill the gap in their business propositions since Capita acquired Quay and Webline and Vertex bought 1st and […]
Around 770,000 borrowers have missed one or more mortgage payments in the last 12 months, says Citizens Advice. Research from the charity shows that younger people are more likely to have missed a mortgage payment, with 13 per cent of 21-24 year-olds surveyed said they had missed one or more payments in the last year. […]
An investment bond offers investors certain tax advantages, one of which is the ability to take partial surrenders from the investment. This facility allows the policyholder to withdraw amounts up to 5% of the amount invested each policy year on a tax deferred basis, without incurring any immediate tax liability. This tax deferred allowance can […]
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