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Over-50s reject annuity proposals

Nearly two-thirds of people aged over 50 are disenchanted with the proposals in the Government&#39s annuity consultation, according to research by Saga Financial Planning.

Around 63 per cent believe the proposals, which include promotion of the open-market option, introduction of a limited-period annuity before age 75 and allowing the opportunity to transfer to a different provider, do not go far enough to make annuities more attractive.

In a survey of 1,000 customers, 87 per cent agreed with Saga&#39s proposal that individuals should only have to buy an annuity to match the minimum income guarantee and then be allowed to buy other investments such as equities and bonds. Saga also won 87 per cent support for its proposal that individuals should only be required to buy an annuity once they reach 65 rather than retirement at a lower age.

Saga wants the Government to introduce a less rigid framework which allows individuals to invest their pension funds as they wish once they have provided a minimum level of benefit.

Comparative rate tables on the FSA website will also not be enough to ensure consumers get the best rate available, according to Saga. It wants all pension providers to publish the top rates when writing to customers.

Saga managing director Andrew Goodsell says: “Our research shows it is not just the industry that believes more realistic proposals are needed but those approaching and in retirement do not feel the suggested reforms are adequate to meet their needs either.”


IFAs warned not to sell their firms too cheaply

IFAs should beware of selling equity in their firms too early, too cheaply and to people that cannot add value to the business, founder of Skandia UK Paul Bradshaw has warned.Bradshaw told the Money Marketing G80 summit, near Newport, Wales last week, that the financial advice market was far from mature and said he expected […]

IFAs berate supermarts over Isa and Pep claims

IFAs have criticised fund supermarkets Cofunds and FundsNetwork for advertising Isa and Pep consolidation without having some of the biggest companies signed up to the service.IFAs are concerned that both supermarkets continue to market a consolidation service despite Cofunds not having access to Fidelity and Jupiter not being available through FundsNetwork.As both fund managers are […]

Progress is stalled at a T junction

It would be interesting to observe the FSA offices secretly as industry responses to CP121 are sorted into two piles labelled “reactionary and confrontational” and “realistic and constructive”. We hope Fidelity&#39s response falls into the latter category.Our realism is grounded in our resignation to the inevitability of change. Despite some deep reservations, there are CP121 […]

Norwich and Peterborough – One Year Fixed Rate Bond

Wednesday, May 8, 2002Type: High interest accountMinimum-maximum investment: £1,000-£500,000Interest rates: 4.6% gross a year, 4.51% gross a monthTerm: One yearOffer period: Until further noticeWithdrawal penalties: No penalty provided £1,000 remains in thebond. Otherwise 50 days’ loss of interest on amountwithdrawnTel: 0845 3002511

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]


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