View more on these topics

Pension credits prompt NU call for trees review

Norwich Union says it wants a rapid review of decision trees by the FSA once the Government reveals further details of the pension credit.

NU says the FSA must aim to incorporate the pension top-ups into decision trees as soon as possible and review the trees more than once a year, which is the current plan.

The bill which would introduce pension credits is expected before the end of the year and pension experts anticipate further details will be unveiled in the pre-Budget statement on November 27 or shortly after.

So far, pension credits have only appeared as a paragraph in decision tree notes. This has not helped either the target audience using trees or IFAs dealing with target group individuals to make fully informed decisions about whether it will pay to save into a pension.

The pension credit has come under fire since it was first announced a year ago by Department of Work and Pensions secretary Alistair Darling, as some experts argued the payments would penalise modest savers by making them pay higher-rate tax on their savings allowing them to keep only 60p in every £1 saved.

NU director of pension development Jerry Barnfield says: “The FSA was hoping to have to review trees only annually but it looks like reviews will have to be much more frequent. There needs to be a strong message on pension credits referred to in decision trees.”

Scottish Equitable pensions development director Stewart Ritchie says: “The fundamental question remains – can the pension industry put hand on heart and say will it definitely always pay to save?”

Recommended

Will Selestia be a star?

Last week a member of the news team at Money Marketing asked me if I thought that Selestia was too late coming into the market to gain significant market share. My reaction was that rather than being late to come to an old market – fund supermarkets – it is early into the new market, […]

Scottish Widows – Guaranteed Investment Bond

Tuesday, November 13, 2001.Type: Guaranteed equity bond.Aim: Growth linked to the FTSE 100 index.Minimum-maximum investment: £2,000-no maximum.Term: Six years.Guarantee: Capital returned in full at end of term regardless ofmovement in index.Return: Capital returned in full along with up to 7.5 per cent of growthin index every six months.Closing date: December 9, 2001.Special offer: 0.1-0.5 per […]

The Daley Update

Venture capital manager Seed Capital is set to launch its third Oxford technology VCT in February. The fund is looking to raise £10m and will be managed by the same team as the Oxford technology and Oxford technology 2 VCTs. Minimum investment is £5,000. Annual fee is expected to be 2 per cent, with an […]

A capital idea

Schroder Unit Trusts has designed a capital-protected fund linked to the Eurostoxx 50 index over five years and two months.Schroder secure growth formula is a Dublin-based closed-ended fund that invests in bonds and derivatives to provide capital protection. Investors get their original capital back at the end of the term regardless of the performance of […]

Qatar cover image - thumbnail

White paper — Qatar International Insights

Jelf Employee Benefits highlights new legislation, key requirements and policy considerations when structuring international private medical insurance (IPMI) for expatriate employees in Qatar. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Qatar.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com