Pensioners moving from unsecured pensions into alternatively secured pensions will see their maxi- mum income fall dramatically under the proposed new tables from the Government Actuary’s Department.Standard Life head of pensions policy John Lawson says the near 40 per cent drop in maximum income for males moving from unsecured pensions – or pre-75 drawdown – into alternatively secured pensions – or post-75 drawdown – is the most noticeable feature of the changes. He says this will reduce a 75-year-old male’s maxi- mum income, based on a 100,000 pension fund, from 11,400 to 6,930. For males aged over 61, maximum drawdown levels are also set to decrease. For example, at age 74, the new maximum drawdown level will provide an income 2.6 per cent lower than the current maximum. Those aged under 60 will benefit from increased drawdown levels of up to 1.8 per cent for a 55-year-old. Younger females also benefit from new maximum rates up to age 71. At age 55, the maximum increases by 8 per cent. However, for women aged 74, the maximum drops by 1.2 per cent. The revised GAD tables are based on medium-term gilt yields and reflect changes to the GAD’s previous assumptions on longevity. Lawson says: “Perhaps the biggest shock will be felt by those moving from unsecured into alternatively secured pensions under the new rules. This could result in a fall in maximum income of nearly 40 per cent.”
The Association of British Ins- urers must involve more IFAs and medical professionals if its critical-illness consultation is to save the product, warns Standard Life protection marketing manager Mick James. More effort at explaining the product to consumers through intermediaries and less attempts at tampering with tiered payments and cancer definitions are needed if the […]
Standard Life Investments has recorded its strongest-ever three-month sales period for its mutual fund range, more than double its third-quarter figures for last year. The firm says inflows for the third quarter this year leapt by 118 per cent to 143.2m, from 65.6m for the period in 2004. SLI says September’s sales of 63.7m represent […]
This week by Daily Mail personal finance journalist Justin Harper
Gold is a better indicator of the direction of inflation than the oil price or consumer price index, says the World Gold Council. The body also claims that gold is a better hedge against inflation than inflation-linked bonds and is an effective hedge against economic shocks, given that it has a finite supply. Research commissioned […]
Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.
In the video, Wintle addresses the following:
• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery
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