View more on these topics

Pensions top for saving but planning left to last minute

FSA consumer research shows pensions are top of the public&#39s savings agenda but most financial planning is carried out only just before retirement.

The FSA undertook the research to look at how consumers plan their financial future and found there is a significant demand for advice.

Pensions are seen as the key vehicle for making provision for retirement, with little consideration given to other methods of saving.

It found that pensions are trusted – with little mention of pension misselling – but there is low understanding of how they are invested and why ret-urns are not guaranteed.

Retirement planning is usually done late in life, with decisions being made only two or three years before or even during retirement, while advice was seen as most important when dealing with occupational pension lump sums and annuities.

Understanding of annuities is very low, even among people with personal pensions, with the majority unaware that annuity purchase is compulsory.

Consumers have “supreme confidence” in company sch-emes, which are seen as the easy option because they allow individuals to delegate responsibility for their pension.

Ruth Whitehead Associates principal Ruth Whitehead says: “Retirement planning is incredibly complex. It is vital to have the best product, not just the mediocre, and you need an IFA to find it for you. This research shows IFAs are needed but the FSA seems intent on removing consumer choice.”

Recommended

Zifa outperforms as Zurich sales edge up and Zan business drops

Zurich Financial Services saw only a small rise in new business last year, blaming “difficult” market conditions which caused sales by its advice network to fall.Total life and investment premiums were up by 3 per cent last year to £3.8bn in equivalent premium income from £3.7bn in 2000. Its IFA group Zifa had a 12 […]

Franklin Templeton Investments – Templeton EuroMarket Growth Fund

Wednesday, January 23, 2002.Type: Ucits.Aim: Growth by investing in Euroland countries.Minimum investment: $5,000 or currency equivalent.Place of registration: Dublin.Investment split: 100 per cent in Euroland countries.Isa link: Yes.Charges: Initial up to 5 per cent, annual 1.5 per cent.Commission: Initial 3.5 per cent, renewal 0.5 per cent.Tel: 020 7925 7171.

Bill of health

I read recently that the private member&#39s bill calling for amendment of the law requiring the compulsory purchase of annuities by no later than the age of 75 has cleared another hurdle, despite Government opposition.On just what grounds? While we all know that an annuity is guaranteed for life, the level of that guaranteed income […]

A matter of choice

“Choice” has been the maxim for the first few weeks of 2002. While there has been a whirlwind of policy issues since the start of the year and it is difficult to know which way to face, my agenda has been dominated by two major events.What are they? Well, it will not take readers too […]

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment