Opposition parties say the Government has failed to prove its pension reforms will raise the nation’s savings levels and claim the continuation of means-testing will discourage savers.Responding to the White Paper in Parliament, Tory Shadow Work and Pensions Secretary Philip Hammond said it was far from clear how the proposals would improve savings habits. The Tories are concerned that the implementation of the national personal accounts scheme, the abolition of the contracted-out rebate and other reforms will worsen the savings ratio rather than improve it. Hammond called on the Government to ensure its review of occupational scheme regulations prevents the reforms from becoming the death knell for such benefits. He says: “It is far from clear to us that, with 30 to 45 per cent of the pensioner population remaining within means-tested benefits, savings behaviour will change as is required to deliver the Government’s objectives.” LibDem Shadow Work and Pensions Secretary David Laws says the continued reliance on means-testing will undermine incentives to save while failing to provide a decent minimum income to keep all pensioners out of poverty. Laws says: “The Government is building its future pension system on the sand of a totally inadequate basic state pension. The continuation of complexity, mass means-testing and a low basic pension threaten to undermine today’s settlement.” Work and Pensions Secretary John Hutton has responded to criticism of the continuation of means-testing – which is planned to level out at around 33 per cent of pensioners – by claiming that only 6 per cent of pensioners will be in receipt of the guaranteed credit by 2050, with the remainder receiving a savings credit designed to reward saving.
Countrywide Mortgage Centres has become a member of The Professional Mortgage Packagers Alliance. Situated in Bedford and part of Countrywide plc, Countrywide Mortgage Centres has a direct-to-consumer operation, a packaging business that services brokers across most of England, and deals with mortgage applications to non-panel lenders that originate from the Countrywide Groups 1100 branches. PMPA […]
Standard Life policyholders have voted overwhelmingly for demutualisation, securing 98 per cent of member votes for the resolution.Of all the votes cast, 1,545,314 voted yes while 32,474, only 2 per cent, voted no. This marks the end of Standard Life’s 81 year-old history as a mutual.The resolution was verified at the special general meeting held […]
Innovation and creativity are not two words that have been associated much with the mortgage industry in the past 18 months. The introduction of mortgage regulation managed to slow down innovation as lenders concentrated on getting to grips with the new regime and ensuring that their systems could cope.
The CII has raised fears that ten free cases from the Financial Ombudsman Service will not be enough to protect innocent firms.The FOS has tabled 10 options following persistent lobbying to scrap the current system where firms have to pay a case fee if they receive more than two complaints, regardless of whether or not […]
The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
The FCA has warned investors that copycat scammers are claiming to represent the custodian of a failed structured product provider to cheat people out money. Reyker Securities took on custody and administration responsibilities after Merchant Capital, the structured products arm of Merchant House Group, went into administration in January 2013, leaving £400m in structured product plans in […]
The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back. London-based Beaufort Securities has been investigated by both the FCA and US authorities. An indictment from the US Department of Justice alleges that […]
Fiducia managing director on ‘good old-fashioned’ customer service in the digital world Anthony Scott is adept in the art of communication. As an adviser and a novelist (he has written the novels ‘On Ashover Hill’ and ‘The Birthday Gift’) it is crucial for the Fiducia Group managing director to engage and build a rapport with […]