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‘NPSS must not repeat stakeholder experience’

Standard Life has called for assurance from the Government that the national pension savings scheme will not become a repeat of stakeholder.

Head of pensions policy John Lawson says pension personal accounts will cost around 1bn to run in the first year, factoring in admin costs and subsidising low charges.

He says those in the industry bidding to run the scheme need clear assurances that if they are to invest in the necessary infrastructure, the scheme will not then be scrapped by the Government.

He says: “We cannot have a repeat of what happened with the stakeholder regime where the charging structure meant it would take 10 to15 years for us to make any profit but the Government pulled the plug.

“The Government is talk- ing about personal accounts being financially free-standing but in reality they will be hugely expensive to set up.”

Aegon head of pensions policy Rachel Vahey says: “The Government will have to provide a guarantee, whether it opts for the branded provider model or the centrally-administered model. The firms that take part in the centrally administered schemes will need certainty. They will be in there to make money and will seek compensation if the Government pulls the plug. We need a long-term solution, not one that is changed halfway through.”


Equity release now cheaper than SVRs, claims Ship

Safe Home Income Plans has revealed research which claims that average equity release rates are lower than average standard variable rate for mainstream mortgages. Examining the annualised interest rates for the top ten equity release providers, Ship has calculated the average interest rate to be 6.14 per cent. In contrast, the average standard variable rate […]

ABI says sales of life and pensions up 25%

Sales of new life and pension products rose by almost 25 per cent in the second quarter of the year compared with the first quarter, according to latest figures from the ABI. The ABI says A-Day has helped to drive record sales of 3.9bn in the second quarter, up by 24.5 per cent on the […]

Nvesta hit after Eurolife goes into administration

Nvesta says it is closed to new business while its future is decided after parent company Eurolife Assurance Group entered administration. EAG went into administration on August 17 when this year’s 700,000 instalment of a five-year compensation plan to policyholders who invested 17m into secured bonds in 1999 fell due. Further compensation for bondholders will […]

Regulator confirms Lambeth/Portman merger

The Financial Services Authority has ratified the merger of the Lambeth Building Society with the Portman Building Society. The merged society will remain a mutual and will run under the name Portman Building Society from the end of Setpember.Lambeth chief executive Chris Radford said in May: “The Lambeth is a strong business that offers excellent […]

Introducing Trevor Greetham

Ryan Medlock, Investment Proposition Manager, Royal London Royal London Asset Management’s (RLAM) new head of multi-asset is officially up and running. I want to look at what expertise Trevor brings to the table and how this affects the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs). Trevor Greetham joined RLAM in April 2015 from […]


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