View more on these topics

Pickering may call for three types of pension

Alan Pickering&#39s long-awaited recommendations for simplifying pensions, due out this week, are likely to call for the setting up of three types of pensions.

But the full ramifications of his proposals will not bec-ome clear until the Inland Revenue tax simplification review is published in September.

Pickering has said his and the Revenue&#39s work are “two parts of the same package” and sources close to the report say some of the recommendations out this week will be left up in the air while the Revenue&#39s plans are still kept under wraps.

The three pension schemes Pickering is likely to put forward are a single defined-benefit regime, a Catmarked def-ined-contribution regime and a non-Catmarked DC regime.

A move to reintroduce pensions as a condition of employment is expected but where the arrangement is a GPP or stakeholder, employees are likely to be given the option to opt out.

Opra is set to come under fire from the review, with Pickering suggesting the adoption of a more approachable and flexible regulator that can provide advice to providers.

Scottish Life head of pension strategy Steve Bee says: “Compulsion and incentives are last-resort measures. The real work on simplification is being done by the Revenue. But we have to make sure people get the best of all their rights and no one loses out.”

Recommended

Hargreaves says Pickering may expose pensioners to perils of inflation

Hargreaves Lansdown says Pickering&#39s proposals to remove LPI requirements for occupational pensions will re-introduce the “peril” of inflation for pensioners.Hargreaves says the move would reduce the cost of final salary schemes and save some from being scrapped but will expose pensioners to inflation at a time when retirement life expectancy is approaching 20 years.But it […]

Pickering recommends scrapping spouse benefits and index-linking

Pickering’s report into pensions legislation is recommending the removal of spouse benefits and index linking in a bid to stop employers closing defined benefit schemes. It says the Government should remove the requirement for occupational pensions and the protected rights element of private pensions to rise in line with the retail price index. This would […]

Sandler: IFA response

Torquil ClarkThe idea of decision trees without full advice, for products dispensed by unqualified individuals, could prove unworkable in today&#39s complaints culture. Without full record keeping, there is no background information on which to justify advice. RJ TempleThe main concern is that advice and the long-standing principle of suitability appear to be sidelined. While consumer […]

93% of IFAs say Stakeholder-type plans fail

More than 90 per cent of IFAs believe the stakeholder-type products advocated by Sandler will fail to sell, according to the first survey on the long-awaited report.The Money Marketing survey, which sought the views of over 400 RIs at the national Positive Solutions forum in Manchester this week, found that 93 per cent of IFAs […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.

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