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Pension reforms risk “mis-selling scandal”

The Government’s automatic enrolment reforms risk a “major mis-selling scandal” unless the state pension system is reformed, NAPF chairman Lindsay Tomlinson warns.

A Department for Work and Pensions green paper outlining proposals for a flat-rate state benefit for future retirees, due to be published last year, has been delayed as Treasury officials attempt to reconcile issues of cost and complexity.

Tomlinson says under the current system people will lose out on means-tested state benefits if they auto-enrol into Nest. He says: “Unless it tackles the means-testing trap, the Government faces a major mis-selling scandal.

“This will materialise a few years down the track, when a large number of people discover that being auto-enrolled into Nest has merely resulted in a reduction in means-tested benefits they would receive if they had opted out. This is a potentially big problem that we are storing up.”

The NAPF proposes introducing a flat state pension of around £140 per week, combining the basic state pension and the second state pension.


Aberdeen moves to high yield

The Aberdeen multi-manager team has moved overweight into high yield within its £800m retail fund range The team now has a 4 per cent position in the Aegon high-yield bond fund across its range and has topped up its position in the Legal & General dynamic bond fund to 6 per cent after the fund […]


The FSA myth makers

For this column, I had planned on giving the retail distribution review a rest and writing about something more interesting, such as critical illness insurance. However, the last week has been dominated by the publication of the first FSA RDR newsletter and the simultaneous release of the 203 evidential submissions to the Treasury select committee […]


Pru distribution director Andy Curran leaves

Prudential distribution director Andy Curran has left the firm to seek “new challenges”. Curran left the provider at the end of last week. A Prudential spokesman says Curran has “something in the pipeline” but he does not know details of his next role. Curran has not been replaced and Pru says the distribution team will […]

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]


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