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Pension credit plan is boost for stakeholder

The Government has given stakeholder a major boost by allaying fears that savers would be penalised by the minimum income guarantee.

The move means the stakeholder target group – those earning between £9,500 to £21,600 – can save without fear of being punished for prudence.

On Monday, Social Security Secretary Alistair Darling unveiled plans to reward people saving for their retirement by saying that those people who fall marginally above the Mig would not have their savings undermined by means-testing.

The proposal is being welcomed by the pension industry but some experts claim it could still mean a planning dilemma for advisers until the changes allowing for pension credits become law.

The details of pension credits will be revealed in Parliament this autumn but its known capital limits will be abolished and the income pensioners receive from their savings will be the basis for means-testing.

Scottish Amicable director (pensions development) John Glendinning says: “This news is a significant help to those put off saving by the Mig but it relies on the assumption that future Parliaments will not change it.

“It is now an issue for the FSA to ensure that decision trees give the best possible information.”

Scottish Equitable pensions development director Stewart Ritchie says: “The fundamental question remains – can anyone put their hands on their hearts and say to these people, &#39If you pay into a stakeholder you will definitely benefit&#39?”


Axa getsa scent of victory in orphan asset vote

Axa Sun Life believes its controversial proposals for the distribution of its £1.7bn orphan assets have secured the backing of its policyholders.The company needs the support of 35 per cent of its policyholders by value of their policy.The vote will not be passed on numbers of policyholders alone because high-value, long-term policies will carry a […]

Now VCTs are five

As the first three venture capital trusts from Murray, Northern and Baronsmead celebrate their fifth birthday in the next two months, the place of the VCT in investment planning is coming under the spotlight.Most original investors have not wanted to sell until at least this anniversary so they can retain the 20 per cent income […]

&#39Specialise in the old&#39

IFAs should specialise if they are to keep pace with the pressures of training, regulation and litigation is the message IFA Care chairman Graham Fidoe will give to a conference this week.He will say the elderly market is an ideal area because of its growing numbers and relative wealth. Fidoe also believes older people need […]

Website connects solicitors with IFAs

Training network Pro-Act is launching an internet portal aimed at putting lawyers in touch with specialist IFAs.The site allows lawyers to find financial planners who specialise in areas such as inheritance tax planning, pensions and divorce, stakeholder and corporate protection.The financial planners are Pro-Act members who have all been vetted for their “quality and commitment”. […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


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